In this day and age, the consumer demand for private cars increases rapidly. This trend is causing numerous effects on people’s lives. For this reason, many people believe that VietNamese guiding should tax private car owners heavily and encourage them to use the money to enhance public transportation. This essay will discuss the benefits and drawbacks of such a measure and drawback conclusion.
The positive aspect that imposing tax on car’s users brings to people’s lives is quite noticeable. One of the greatest merits is the decreasing environmental solutions and traffic accidents. According to research, more than 6000 people are injured by traffic accidents and 70% of the causes of environmental pollution are cars. For this reason, the taxation method is effective to minimize this problem due to the fact that the consumer demand for private cars will decrease and people will have a tendency to use public transportation.
Nevertheless, some potential drawbacks of the government imposing taxes can be listed. Firstly, the unemployment rate will increase because the consumer demand for cars decreases. As a result, the revenue of the car manufacturing company may decline. For this reason, they have to drop employees to guarantee their company stability. Furthermore, this solution will cause numerous problems for residents living in the countryside due to the fact that in the countryside, the infrastructure is not also developed and using public transportation is not beneficials so people living in rural areas have a tendency to use private cars. If the government taxes heavily, people can not afford them and their lives become more difficult.
To sum up, there are two sides to everything and applying this solution is not an exception. However, in my point of view, the Vietnamese government can offer a reasonable tax rate for private cars and encourage people to use public transportation to minimize environmental pollution and traffic accidents.