Toll Plaza Taxes and Rules in India

A Toll plaza is a place where a driver stops to pay a fixed amount before using a certain road, mostly highways. Most people are aware that every highway in India (State or National), is taxed by the Government of India in order to raise funds for its maintenance. These funds are important in order to provide infrastructural and other needs.

What is Toll Tax?

Most State or National Highways are taxed by the government in order to ensure that they are maintained, as these are key roads that join States and cities and interconnect the country on the whole. As stated earlier, Toll tax is the monetary amount one is required to pay when using the expressway or highway in India. A lot of money is spent by the government on building these highways for better connectivity and maintaining security and safety on the roads. This is recovered at a later date by charging tolls from individuals who use the highways.

What are the Toll Tax Rules in India?

Although there are many roads that persons may choose to take in place of the highway in order to read their destination, a highway is way more convenient in terms of the time, kind of road, and feasibility of driving. The toll paid at these toll plazas on the highways is called toll tax. The rate of toll tax in India differs from highway to highway. This is based upon the distance that each traveler traveling on the road is accountable for. Provisions related to maximum waiting time, and the number of vehicles in a queue at peak hours at toll plazas are included in toll plaza rules. Toll Tax Rates in India are revised every year from April 1, based upon policies of National Highway Fee (Determination of Rates and Collection) Rules, 2008. Some Toll Plaza Rules in India have been stated below:

  1. Vehicles: Only 6 or less than 6 vehicles per toll booth lane should be in a queue during peak traffic hours.
  2. Toll Booths: There should be enough toll booths or toll lanes so that the service time for vehicles is not more than ten seconds per vehicle at peak traffic time flow.
  3. Increase in Toll Lanes: Toll lanes or booths should be increased if the maximum waiting time for the vehicles or users exceeds three minutes.

Toll rules allow the building of new roads and maintenance of such roads without increasing taxes on the general Indian. It is a general practice that once the entire cost of construction is recovered by the Government through toll tax, the requirement to pay tolls on highways is also removed.

Who is exempted from paying Toll Tax in India?

There are several persons (mostly VIPs) that are exempted from paying toll tax across the country. These are: