Learning from practice: examples of fiscal reform in cities to deal with pollution and congestion

Several cities in India including Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, have begun to take steps to implement fiscal measures to address the problem of air pollution and congestion. The key focus of the fiscal measures are clean fuels and technologies including CNG, LPG and zero emissions technologies; disincentives for older vehicles; and creation of dedicated fund from taxes on polluting fuels to pay for pollution control efforts.