The State Government plans to introduce a congestion tax in WA as part of revenue raising measures to help pay for new infrastructure projects according to media reports.

The ABC’s Jessica Strutt is reporting the new tax has already been ticked off by Cabinet and appears set to be announced as part of the budget mid-year review, due to be released later this month.

The tax will be added to current car registration and is believed to be $100 per year.

?Chief Executive Officer at Urban Development Institute of Australia (WA), Debra Goostrey, says that the Barnett government’s plan doesn’t reflect a true congestion tax.

Ms Goostrey told 6PR that the models used in Europe and England, where motorists entering high congestion areas are charged via electronic tagging, is a preferred model for charging a congestion tax.

Ms Goostrey added imposing a flat charge on all motorists, whether they entered the city during peak hours or not, was an unfair way to charge a congestion related tax and wouldn’t discourage congestion.