fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
LOG IN
SIGN UP

Fincash » Toll Tax in India

Toll Tax in India 2024

Updated on December 19, 2024 , 164170 views

Have you ever wondered why it takes such a long time to pass from a toll booth especially during traffic? Have you ever waited for a long time for your turn to arrive to pass through the toll booth? Well, this is due to the toll tax rules today. However, in 2015-2016, a member from the National Highway Authority of India (NHAI) wrote a letter expressing concern with regards to road congestion at toll plazas. Let’s take a look at toll tax rules in India.

Toll Tax in India

Note: Car Tax or Vehicle Excise Duty (VED) is to be paid every year as per the new norms effective from April 2021. It depends on the age of the car and the carbon emissions. The vehicle older than 40 years are exempt.

Toll Tax Meaning

Toll Tax is the amount you pay to use the expressway or highway anywhere in the country. The government has been involved in constructing better connectivity between different states, which involves a lot of money. These expenses are recovered by charging a toll tax from highways. A highway or an expressway is a convenient option to use when it comes to travelling to different cities or states. The toll Tax Rate varies across different highways and expressways across India. The amount is based on the distance of the road and as a traveller, you will have to be accountable for it.

Key Points about Toll Tax in India

  • Toll Rates: The toll rates vary depending on several factors, including the type of vehicle, distance traveled, and the specific road or bridge. Rates are usually published and displayed at toll plazas.

  • Toll Collection Methods: In recent years, there has been a push to adopt electronic toll collection methods to reduce congestion at toll booths and promote digital transactions. Fastag is a prime example of this effort, allowing vehicles to pass through toll plazas without stopping.

  • Exemptions: Some categories of vehicles, such as government vehicles, emergency vehicles, and certain categories of defense vehicles, may be exempt from toll Taxes.

  • Toll Collection Agencies: Toll collection is often managed by government agencies or private companies through contracts awarded by the government. These agencies are responsible for collecting tolls, maintaining infrastructure, and ensuring the efficient flow of traffic.

Ready to Invest?
Talk to our investment specialist
Disclaimer:
By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

  • National Highways: Toll taxes are commonly collected on national highways, which are important road arteries connecting major cities and regions across the country.

  • State Highways and Local Roads: In addition to national highways, some state highways and local roads may also have toll plazas for revenue generation and maintenance purposes. The toll rates on state highways and local roads are usually lower than those on national highways.

  • Payment Methods: Depending on the toll plaza, payment can be made in cash, through electronic payment methods like Fastag, or even through mobile apps in some cases.

  • Toll Plaza Infrastructure: Toll plazas typically have facilities for vehicles to stop and pay tolls, as well as lanes for vehicles equipped with Fastag for seamless passage.

It's worth noting that the specific rules, regulations, and toll rates can vary from one state to another in India, and they may change over time. Travelers should check the latest information before embarking on a journey to understand the applicable toll charges and payment methods for their route.

Toll Tax Rules

The toll tax rules 12 hours was a message that went viral on social media in 2018. The message claimed that if you go from one place to another and return within 12 hours, you won’t be charged a tollcharged toll at the booth. Furthermore, it was attributed to Nitin Gadkari, the Minister of Road Transport and Highways, Shipping and Water Resource, River Development and Ganga Rejuvenation in 2018.

After much questions and tweets, it was made clear the claim in the message was false. The National highwayshigh ways Authority of India (NHAI) had written a letter regarding revised rates of user fee on toll booths, categories like a single journey, return journey, etc. However, there was no mention of any 12-hour slip.

Toll Plaza Rules in India

The toll tax rules in India brings to your attention the maximum time for waiting, the number of vehicles per lane, etc. Let’s take a look.

1. Vehicles

According to the toll tax rules, you cannot have more than 6 vehicles per lane in a queue during peak hours.

2. Lanes/Booths

The number of toll lanes or /boothsbooth should ensure that the service time for the per vehicle during peak hours is 10 seconds per vehicle. The number of toll lanes should increase if the maximum waiting time of a traveller exceeds 2 minutes. Note that there is no clear answer in the agreement of concession with regards to a penalty if the rules are violated.

4. Fastag Lanes

Fastag is an electronic toll collection system that allows for quicker and cashless transactions. Vehicles equipped with Fastag stickers can use dedicated lanes for faster processing.

Toll Tax Exemption List

The government is making constant efforts to reduce delays and remove congestion at National Highways (NH) across the country. The Ministry of Road Transport and Highways (MoRTH) brought in the Electronic Toll Collection (ETC) through RFID based FASTag. This method ensures that all vehicles passing through the toll booths can travel without any delay.

The following are exempted from paying fees at toll plazas across India -

  1. President of India
  2. Vice-President of India
  3. Prime Minister of India
  4. Governor of a State
  5. The Chief Justice of India
  6. The Speaker of the House of People
  7. The Cabinet Minister of the Union
  8. The Chief Minister of the Union
  9. The Judge of the Supreme Court
  10. The Minister of State of the Union
  11. The Lieutenant Governor of a Union Territory
  12. The Chief of Staff holding the rank of full General or equivalent rank
  13. The Chairman of the Legislative Council of a State
  14. The Speaker of the Legislative Assembly of a State
  15. The Chief Justice of a High Court
  16. The Judge of a High Court
  17. The Member of Parliament
  18. The Army Commander or Vice-Chief of Army Staff and equivalent in other services
  19. The Chief Secretary to a State Government within concerned State
  20. The Secretary to the Government of India
  21. The Secretary, Council of States
  22. The Secretary, House of People
  23. The Foreign dignitary on a State visit
  24. The Member of Legislative Assembly of a State and the Member of Legislative Council of a State within their respective State, if he or she produces his or her identity card issued by the concerned legislature of the State
  25. The awardee of Param Vir Chakra, Ashok Chakra, Maha Vir Chakra, Kirti Chakra, Vir Chakra and Shaurya Chakra if such awardee produces his or her photo identity card duly authenticated by the appropriate or competent authority for such award

Other sectors included are mentioned below:

  1. The Ministry of Defence including those which are eligible for exemption in accordance with the provisions of the Indian Toll (Army and Air Force) Act, 1901 and rules made thereunder, as extended to Navy

  2. The Central and State armed forces in uniform including paramilitary forces and Police

  3. An executive Magistrate

  4. The fire-fighting Department or Organization

  5. the National Highway Authority of India or any other Government organization using such vehicle for inspection, survey, construction or operation of national highways and maintenance thereof;

    (a) used as an ambulance; and (b) used as a funeral van (c) Mechanical vehicles specially designed and constructed for use of a person suffering from physical defect or disability.

FASTag Toll

FASTag is a new way to pay toll tax online. It is a prepaid rechargeable tag that allow automatic payment Deduction from the FASTag. When the vehicle crosses the toll plaza, the toll fee will get deducted from the Bank account linked to the FASTag affixed on the vehicle's windscreen. These FASTags do not have any expiry date, which means, they can be used as long as they are readable at the toll plaza and are not tampered.

Documents Required for FASTag Application

Make sure to pay the toll fees. Stay informed and vigilant.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
How helpful was this page ?
Rated 3.2, based on 24 reviews.
POST A COMMENT