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Cabinet to raise traffic tax cap

Prague could adopt congestion fees as early as next year

By Riva Froymovich
Staff Writer, The Prague Post
June 13th, 2007 issue

Drivers entering Prague may be faced with up to a 100 Kč ($4.75) fee as soon as a year from now, thanks to a program approved by the Cabinet June 11.
The tax is part of a government package that aims to curb car and dust emissions. The driving fee would decrease the number of cars operating on city roads and make transportation alternatives more appealing, according to the Environment Ministry.
Currently, there is a cap of 20 Kč on the charges municipalities can assess drivers entering a city center. The new program paves the way for the Finance Ministry to amend the law, allowing municipalities to charge up to 100 Kč, Jakub Kašpar said, spokesman for the Environment Ministry.
Whether the charges will actually be implemented and their value, though, is the decision of each municipality.
Following Monday’s Cabinet decision, the Finance Ministry is obliged to prepare a new version of the law on local payments by the end of 2008, said Kašpar. The maximum allowable charge levied on drivers hasn’t been changed since 1990.
“The city center should serve people, not cars,” Kašpar said. A drop in road traffic would improve the quality of life in the center, decreasing traffic and emissions.
Right now, “the motivation for not using a car in the centers is almost nonexistent,” he said. And, under current law, paying 20 Kč to enter Prague by car would present no barrier to drivers.
No city will be obliged to adopt congestion fees, but raising the cap will make it a more viable option.
In fact, “Prague is planning something like this, like in London and Stockholm,” Kašpar said.
The mayor of Prague has been dallying with the possibility of congestion fees for two years, confirmed spokeswoman Miroslava Kreuzerová.
If Prague went forward with congestion fees, it would join a number of cities that have recently tagged on extra charges for driving.
New York City Mayor Michael R. Bloomberg in April announced his intention to levy a congestion fee of $8 on drivers who enter certain areas of Manhattan during weekday peak hours. And London’s mayor, Ken Livingstone, has claimed that the city’s new driving taxes have reduced traffic about 20 percent.
However, less car traffic may mean more public transportation passengers, prompting fears as to whether crowded morning tram cars can take any more heat.
While the Prague Public Transit Company hasn’t made any plans for what may result from driving charges, they say they are ready to accept an influx of commuters.
“Every day, we’re transporting over 2 million passengers,” on 930 trams and 110 metro trains, said a spokesperson, who declined to be identified. “If this increases dramatically, we will be ready for that.”

Riva Froymovich can be reached at rfroymovich@praguepost.com


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