Home Money Everything You Need to Know About Toll Tax in India

Everything You Need to Know About Toll Tax in India

by Louise W. Rice

We all know we have to pay toll tax, but most of us aren’t aware of ‘why’ we need to pay toll tax.

Wondering what is toll tax, why we must pay toll tax, and what is FAStag? Don’t worry. We’ll answer all your queries here.

So, What is Toll Tax?

To understand ‘what is toll tax’, let’s first find out why it has to be paid.

  • Toll tax is supposed to be paid by the driver while crossing interstate expressways/highways. Toll tax funds are managed by the National Highway Authority of India (NHAI).
  • There are several boots in one toll tax station for customers’ convenience.
  • You will find a toll tax every 60 kilometers (more or less).
  • To save extra time, FASTags have been introduced by the NHAI.

FASTags- what are they?

FASTag is a gateway through which there won’t be any need to stand and wait in queue till the car before us makes the payment in cash.

Cash payments delay the process simply because nobody has the exact amount in cash. . For this reason, every car takes at least 5-7 minutes to pay.

To beat that struggle, NHAI has introduced a simple and easy to go method – FASTags. These tags have been introduced to avoid human interaction during the toll tax payments.

The card (FASTtag) is affixed to the car, the detector on the toll scans it, and the money is deducted from the account attached to the tag automatically.

How does FASTag work?

  • Apply for a FASTag through your preferred bank (not every bank provides this service).
  • After submission of the required documents, you will receive the FASTag at the provided address in a few days.
  • Stick it to the windshield of your vehicle.
  • Every FASTag is linked to a pre-paid account. Recharges can be made through that account.
  • Once the FASTag is stuck to the car and payment has been made, you are all set.

This was a brief on ‘what is toll tax’. Let’s find out some interesting aspects of toll tax next.

There is also a long list of people who can cross tolls without paying toll tax. Some of them are listed below-

  • Prime Minister of India
  • President of India
  • Member of Parliament
  • Judge of High Court
  • Army Commander
  • Vice Chief of Amy Staff
  • Secretary house of people
  • Foreign dignity on a state visit
  • Awardees with the following recognition:
  • Param Vir Chakra, Ashok Chakra
  • Maha Vir Chakra, Kirti Chakra
  • Vir Chakra
  • Shaurya Chakra

These were some positions that are allowed to not pay toll taxes.

Now that we have talked about the people who didn’t have to pay toll tax, let’s find out about the vehicles which are exempted from paying toll tax:

  • An ambulance
  • Funeral vehicle
  • Fire fighting department vehicle
  • Executive Magistrate’s vehicle
  • A vehicle belonging to the NHAI authority
  • Central/State armed forces vehicle
  • A vehicle belonging to govt. agency
  • A vehicle belonging to the Ministry of Defence

More about road tax

By now, we have a grasp on what toll tax is. Let’s find out more about road tax.

Once we have understood ‘what is toll tax’, one common question might arise – why do we have to pay road tax? How many types of taxes must be paid for the roads/highways?

Well, here’s a simplified answer

  • Toll tax is levied while crossing certain highways/tollways. You don’t have to pay toll tax if you haven’t crossed the tollway. On the other hand, road tax needs to be paid at certain intervals without fail.
  • Toll tax is managed and run by NHAI- National Highway Authority of India. Road tax is managed by Regional Transport Office (RTO).
  • Toll tax is calculated by the stretch of the road, whereas road tax is calculated through the price of the vehicle.
  • Toll tax is paid for the upgradation of highways and to pay the salary of the employees working under any project with NHAI.

This was brief on what toll tax is. We often ignore the things right in front of our eyes, and it’s okay. But awareness is key, and since we must deal with paying taxes one day (if you haven’t started paying already). It’s best to know why we are paying them and where is our hard-earned money going.

Toll tax is essential for the construction and renovation of highways. It ensures a safer and more convenient travel path for the citizens.

Roads are constantly upgraded, and innovations like FASTag are introduced through the tax funds.

Every tax we pay adds to a better lifestyle for a common person. Even when we might oversee these small changes, they exist.

In summary

After reading this article, you will have a better insight into what toll tax is and the reason why we pay it.

Now and then, we travel from one state to another. Traveling on well-maintained and safe roads gives a sense of security to the passengers. By paying toll tax, the citizens do their share of duty towards the state, and the state repays by making the roads a better and safer place to travel.

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