The Punjab Government has levied 10 paise per litre additional cess on high speed diesel and petrol within the urban areas of the state. 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 6,2019. It has come into force after the issuance of a gazette notification. The government has also levied additional cess of 10 per cent on final price of auctioned vanity vehicle number plates.

What is Cess?

Cess is tax on tax. It is levied for a specific purpose and can be used only for that specific purpose. For example, the education cess is used only for the promotion and development of education.

What is Punjab 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 urban transport projects recommended or approved under the various schemes of the state government and the Union Government.

Punjab Urban Transport Fund Management Committee

The government has also constituted a committee to be known as the Punjab Urban Transport Fund Management Committee. It shall consist of :

1. The Chief Minister as Chairperson;

2. The Local Government Minister as the Vice-Chairperson;

3. The Chief Secretary;

4. The Administrative Secretary of the Department of Local Government;

5. The Administrative Secretary of the Department of Finance;

6. The Administrative Secretary of the Department of Transport;

7. The State Transport Commissioner;

8. Managing Director of Punjab Infrastructure Development Board-cum-Member Secretary of the Punjab Bus Metro Society;

9. The Joint Managing Director-cum-Chief Executive Officer of the Punjab Municipal Infrastructure Development Company as the Member Secretary.

Functions of the Commitee :

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.