Toll tax in India

The main objective of toll collection is to help in the recovery of building and maintaining high-quality roads. When government develops major infrastructure such as expressways and highways across states, they require significant capital expenditure. So, instead of relying on taxpayers’ money alone to maintain the infrastructure, toll tax allows the cost of burden to be shared with the users of the road as well.  

How are Toll Charges Determined? 

Toll rates are not same for all vehicles, they vary based on several factors, such as: 

1. Vehicle type: Heavier vehicles need to pay more charges as compared to smaller vehicles. 

1. Distance travelled: Longer distances generally cost more for toll payers. 

1. Road complexity: Expressways with tunnels and flyovers usually charge higher tolls than plain highways because of the increased cost of building them. 

These rates are revised periodically. 

Toll Collection Methods in India 

Earlier, tolls were paid directly to the people sitting at booths on toll plazas where drivers need to stop to make the cash payments. But with time and better technologies, now tolls are charged mainly through electronic and automated alternatives such as: 

• FASTag: A radio-frequency ID sticker which is linked to a prepaid account that automatically debits tolls as a vehicle passes through a plaza. It has reduced the wait times significantly and is mandatory for four wheeled vehicles in India. 
• Electronic Toll Collection: This is a system in which RFID (Radio-Frequency Identification) transponders communicate with roadside receivers to charge the toll tax without any human intervention. 
• Open Road/ GNSS-Based Tolling: It is an emerging technology that uses satellite data or cameras with license plate recognition to calculate tolls without the need of booths. Currently GNSS-based tolling the considered as the most advanced toll collection technology under consideration in India.

       A pilot implementation has been completed on the Bengaluru-Mysuru section of NH-275 in Karnataka. 

Exemptions and Special Cases for Toll Tax in India 

There are certain exemptions when it comes to toll tax. These include emergency vehicles like ambulance and fire brigades, certain government and defence vehicles on duty, and identified dignitaries. 

Benefits of Toll Tax in India 

Toll tax helps in maintaining better infrastructure across the country and even advance it to higher levels of quality and safety. Electronic systems like FASTag, GNSS-enabled technologies help in minimizing the congestion, reduce fuel wastage, and provide transparent, and cashless transactions. 

Challenges of Having Toll Tax System in India 

Despite their benefits, toll tax also sparks debates on its utility: 

1. Cost burden on commuters: The people who travel frequently through highways often feel that the tolls are a significant addition to their travel costs. 

1. Traffic diversion: Because of high toll rates for a section of people, they might choose to use a less safe route to avoid fees. 

1. Administrative overhead: Deploying and maintaining the toll itself has its own cost implications. 

1. Perceptions of inequity: Some people argue that toll tax are disproportionately charged without keeping in mind the income inequality that country faces. 

India’s tolling ecosystem is evolving with better technologies. In future, toll may be charged on the grounds of exact distance travelled instead of fixed-point toll stops. This model will ensure more dynamic pricing, especially for short-distance commuters.