294 words
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SAMPLE 49
In order to solve traffic problems, governments should tax private car owners
heavily and use the money to improve public transportation. What are the
advantages and disadvantages of such a solution?
Many nations impose a high tax rate on private cars to improve traffic congestion
and to promote public transportation. Even though the higher tax on cars will help
discourage car ownership and contribute to the national budget for public
transportation, it definitely creates a burden for buyers which may lead to public
tension.
Indeed, the tax will raise the retail price of cars, thus slowing down the demand
for them. When the number of cars on road is reduced, traffic congestion is
lessened. For instance, Malaysia is a typical example as this country imposes a
very high tax rate on private cars. The price of a car in Malaysia is escalated by
more than 100% after a sales tax and a duty tax. According to a report published
by the Road Transportation Department in 2005, introducing taxes on private cars
had helped the government to improve the traffic congestion in Kuala Lumpur by
reducing the average traffic-jam hours from 2.5 hours to 1.2 hours in the city.
Furthermore, the government can use the tax revenue to develop and to promote
public transportation system. Also in the case of Malaysia, this country has built,
with the funding from tax revenue on private cars, the main rapid sky-train and
underground metro systems, helping thousands of people commute to work on a
daily basis.
Nevertheless, vehicles tax is blamed for creating an unfair treatment in the society
as it impacts the poor more than it does to the rich. In other words, when public
transportation is not an ideal or optimal solution, people still need to buy a car.
High taxation will create a burden for consumers, especially those with a limited
budget. For example, the high tax rate in Malaysia causes a car to cost almost two
times the original price. According to a survey conducted by the Malaysia
Automobile Institute, the first car buyers who are mostly fresh graduated students,
have to make a loan when buying cars and it often takes them more than five years
on average to pay it off. Therefore people are holding protests to call for a drop in
car tax rate in Malaysia.
To conclude, tax on private cars brings both merits and drawbacks. It helps to cut
down the demand for cars, which in turn, helps to cease traffic congestion.
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However, it creates a burden to the public when they do not have an alternative
option to owning a car.
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