Why free parking is (a) right

Parking vehicles seems to be the most debated topic in Ahmedabad nowadays. It is being argued that free parking by Ahmedabad Municipal Corporation (AMC) means ordinary citizens paying for services given to car owners, which is unfair. It may be free for AMC, but the user has actually paid for it.

Most residents buy cars and two-wheelers, as the civic body has failed to provide a reliable, affordable and accessible (it should be comfortable as well, but let's not be so optimistic) public transport. Ahmedabad Municipal Transport Service (AMTS), once a reputed name (for its service) even nationally, is in a pathetic condition, quality-wise and quantity-wise. The much-hyped Bus Rapid Transport System (BRTS) is route specific and not accessible to all as last mile connectivity is not provided. Feeder buses, that found a mention in the original plan of BRTS, are nowhere to be seen. Citizens, who want honour commitments, will not risk using public transport in its current form. So, buying private vehicles is a necessity, and not a luxury.

Now, the authorities say that the onus of parking private vehicles is on citizens, deprived of public transport, and therefore need to pay for it. When, in reality, they have already paid for it. When they buy petrol or diesel, they pay taxes, which are as much as the naked cost of the fuel. The onus is now on the administration to provide the service and not charge the user for it.

Normally, people travel for professional reasons, for shopping or spending some quality, fun time with their families. If it is for shopping or fun or going to a restaurant, they pay Goods and Services Tax (GST). If it is for professional reasons, they earning out of it and paying Income Tax. Thus, they are contributing to the state exchequer and so the onus is on the state to ensure that their parking needs are met. Levying additional charges means the user is subjected to cascading financial burden. The norms of cascading taxes and the concept of taxpayer-friendly administration applies equally to an individual tax payer, as much as it applies to multi-national companies (MNCs), who are given tax incentives. So, users of private vehicles should also be incentivised as they are contributing to the state exchequer.

Since the civic body is providing the facility, it is entitled to monetise it. It should seek compensation from the state government and central government since they are the beneficiaries of tax collected and should incentivise local bodies, which enable higher tax collection. Even the Finance Commissions (both central and state) should look at models of devolution of financial resources to local bodies, which enable higher tax collections.

Moreover, petrol and diesel are key contributors to the exchequers of state and the Centre. That is why they are kept out of GST. Gujarat government's GST collection in April-June of 2018 was 14 per cent lower than the VAT collection on corresponding items in the corresponding quarter of 2016-17. Here, VAT revenue on petrol and diesel has came to the rescue of the state treasury, reducing the revenue gap to about 4 per cent. Reduction in VAT revenue from petrol and diesel at a time when GST revenue is falling will be a double whammy for the state government, which is one of the principal sources to fund local bodies. So, before taking any drastic measures, the civic body should consult its parent ministry and discuss implications with the finance ministry.

The Administration should consult all stakeholders and make comprehensive and sustainable plans rather than taking one step forward and two steps backwards if it wants to deliver citizen-centric governance. After all, the state owes its existence to citizens and not the other way round.

The author is a senior journalist with DNA, Ahmedabad