New Delhi: In order to encourage more people to use public transport, Urban Development Ministry has demanded abolition of excise duty on public buses.

“We have submitted a proposal for reducing the excise duty on buses meant for public transportation to zero level to the Finance Ministry,” Urban Development Minister Jaipal Reddy said while addressing the National Conference on JNNURM and Urban Mobility India 2008.

“Last year it was reduced to 12% from 16%. But we want it 0% to encourage public buses as a mode of popular transportation in cities,” Reddy said.

Pointing out that most of the cities do not have an organised city bus service, he said that the movement of goods and people has been facing several problems of congestion, pollution and accidents, coupled with lack of coordination among various agencies.

“Unless these are remedied, poor transportation of goods and people can become a major hurdle to economic growth and cause deterioration to the quality of life,” he said.

Stressing the need to switch over from personal vehicles to public transport, Reddy said: “If we provide attractive options of public transport it will persuade the urban commuters to shift voluntarily to the public transport systems.”