Govt levies 10 paise cess on fuel for urban transport fund

Kulwinder Sandhu

Tribune News Service

Moga, September 20

The Punjab Government has levied 10 paise per litre additional cess on high speed diesel and petrol within the urban areas of the state, with effect from today.

According to a notification issued by the government in this regard yesterday, the cess has been imposed for Punjab Urban Transport Fund. The government introduced the Punjab Urban Transport Fund Act, 2019, in the Assembly on August 6. It has come into force after the issuance of a gazette notification today.

The government has also levied additional cess of 10 per cent on final price of auctioned vanity vehicle number plates.

In case of retaining old VIP vehicle numbers, Rs 25,000 for single digit vehicle number (0001), Rs 10,000 for numbers 0002-0009 and Rs 5,000 and Rs 2,000 for 0010-99 and 0100-9999, respectively, have also been levied.

The Punjab Urban Transport Fund has been established with a view to accelerate urban transport development, viability gap funding and infrastructure for urban transport projects recommended or approved under the various schemes of the state government and the Union Government.

The government has also constituted a committee to be known as the Punjab Urban Transport Fund Management Committee, comprising of the Chief Minister as Chairperson; the Local Government Minister as the Vice-Chairperson; the Chief Secretary, the Administrative Secretary of the Department of Local Government, the Administrative Secretary of the Department of Finance, the Administrative Secretary of the Department of Transport as members.

The Joint Managing Director-cum-Chief Executive Officer of the Punjab Municipal Infrastructure Development Company has been made the Member Secretary of this committee. The State Transport Commissioner and Managing Director of Punjab Infrastructure Development Board-cum-Member Secretary of the Punjab Bus Metro Society have also been made members of the committee.

It will determine policies, programmes and priorities regarding public transport in urban areas; monitor, evaluate and review the progress and proper utilisation of funds; make suggestions and recommendations regarding generation of resources to support urban transport system and augmentation and maintenance of quality services; make decisions regarding raising of loans, floating of bonds and debentures and other resources for development of urban development services; explore possibilities and encourage the outsourcing of urban transport; work out modalities for funding, submit the same to the government for approval and allocate amounts from fund for urban transport activities.

Addl 10% on vanity number plates

In case of retaining old VIP vehicle numbers, Rs 25,000 cess for single digit vehicle number (0001), Rs 10,000 for numbers 0002-0009 and Rs 5,000 and Rs 2,000 for 0010-99 and 0100-9999, respectively, has also been levied.

What is Urban Transport Fund

The Punjab Urban Transport Fund has been established with a view to accelerate urban transport development, viability gap funding and infrastructure for  projects recommended or approved under the various schemes of the state government and the Union Government