Alternatively, the funds generated could be used to reduce transit fares and improve transit service in low-income areas. Taxes and Pollution Fees . In addition to road pricing, other variable transportation charges to recover the full costs of transportation have been suggested. In practice, there is already an array of taxes on motor vehicles in most countries, ranging from purchase taxes on new vehicles to fuel taxes. Governments have long used fuel taxes as a means of raising revenue for road building and maintenance.
Fuel taxes can be an important policy tool in efforts to change travel behaviors.
Such fees can be collected at annual vehicle inspections and can be based on odometer readings. Objections to higher taxes and fees are numerous. One concern is that they would hurt low-income families, who already spend proportionately more of their income on transportation. In addition, taxes do not influence when a car is used, so they may have little effect on congestion. Some analysts suggest that fuel taxes may become less effective in reducing travel demand as cars become more fuelefficient.