The City of Melbourne warns the state government’s planned 73 per cent hike in the car parking levy will cripple the CBD.

Councillors said they were concerned the increase would deter visitors and workers from the city and would stall Melbourne’s economic recovery.

Lord Mayor Nick Reece is increasingly at logger heads with the Allan government. Credit: Penny Stephens

In the new year, the Allan government’s congestion levy , which is essentially a tax on car parks in the inner city, will increase 73 per cent in inner-city areas.

The City of Melbourne estimates this will result in a 19 per cent increase in parking fees at council-owned car parks.

The tax , introduced in 2006 , is designed to decrease traffic congestion by deterring motorists. The costs are passed on directly

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