All state and national highways in India belong to the government, and road tax is applicable to all those who use them. The taxes collected are used to maintain the roads so that drivers and riders have no issues on the road.
In India, every highway that is a state or national highway, is taxed by the Indian Government for raising the cost of making as well as the maintenance of the roads. This is a very essential cost which allows us to be able to travel comfortably through states, towns and cities conveniently. Also security on these roads are very important since highway robbery needs to be controlled in some parts of India. This road taxation helps to ensure that the cost of road safety and security is also maintained. There are various kinds of road taxes, that are based on the state you are traveling in. The most common road tax that is collected from vehicles, is the toll tax.
Road Taxes in States and Union Territories of India
While this tax is mandatory and is charged in toll plazas along the highways across India, the rates vary because each toll plaza is accountable for a certain distance of the road. This taxation does is exempted for certain people including VIPs in the country of certain officials who have been listed in the last section.
Toll Tax Rates
Based on the policies of the National Highways Fee (Determination of Rates and Collection Rules, 2008, the toll tax rates are supposed to undergo revision each year and take effect from April 1, the are the current rates are available on the website and differ based on location and distances.
Toll Tax Policy
Policy for collecting toll tax is based on the National Highways Act, 1956 (48 of 1956) provisions as well as the National Highways Fee (Determination of Rates and Collection) Rules, 2008, when this amendment was made. As of 2016 there are 390 toll tax collection fee plazas across the national highways in India. Based on the current policy literature any road with 6 lanes with 4 lanes already running is tolled even if the highway is not fully completed. As of 2016, there is no separate regulatory authority running independently for this taxation.
Toll Tax Exemption List
Any vehicle which has the following people will be exempted toll tax across India:
- President of India
- Prime-Minister of India
- Vice-President of India
- Chief Justice of India
- Governor of any State in India
- Speaker of the House of People
- Cabinet Minister of the Union
- Judge of the Supreme Court
- Governor of any State in India
- Minister of State of the Union
- Member of Parliament
- Lieutenant Governor of any Union Territory in India
- Chief of Staff holding a full General or equivalent rank
- Chairman of the Legislative Council of a State
- Speaker of the Legislative Assembly of any State in India
- Chief Justice of a High Court
- Judge of a High Court
- Army Commander or Vice-Chief of Army Staff and equivalent in other services
- Foreign dignitary on State visit
- Chief Secretary to a State Government within concerned State
- Secretary to the Government of India
- Secretary, Council of States
- Secretary, House of People
- A Member of Legislative Assembly of a State in the state premises, with identity proof
- A Member of Legislative Council in the borders of their respective State, with identity proof
- Awardees of the following recognition, with adequate identity proof:
- Param Vir Chakra, Ashok Chakra
- Maha Vir Chakra, Kirti Chakra
- Vir Chakra
- Shaurya Chakra
The other vehicles which are exempted from the toll tax include:
- Vehicle under or with a passenger who is from the Ministry of Defence including people eligible for toll exemption based on the provisions of the Indian Toll (Army and Air Force) Act, 1901 and laws including the Navy
- Central and State armed forces in uniform including para military forces and police
- An executive Magistrate
- Vehicle belonging to the fire-fighting Department or organisation
- Vehicle belonging to the National Highways Authority of India
- Vehicle belonging to any other Government agency or organisation for purposes of survey, inspection, operation or construction and maintenance of national highways
- Vehicle used as ambulance
- Vehicle used as funeral van
Road Tax FAQs
- I have purchased a used car and registered it in a new state. Will I get a refund on my road tax?
- Is there a time limit for applying tax refund?
- Is Tax Refund Process Online? Is Tax Refund applicable in all States?
- What are the documents I will have to submit in order to pay my road tax?
No, you will not get a refund on your road tax if you purchase a used car and get it registered in a new state. In this case, only the original owner can apply for a refund of road tax.
Yes, there is a time limit regarding the application for a refund of road tax. However, the time limit will differ from one state to another.
Unfortunately, tax refund process is not online. If you wish to apply for road tax refund, you will have to visit the nearest RTO and complete the process of applying for a road tax refund. Yes, regardless of the state in which you reside, you can apply for a tax refund provided you meet the necessary criteria.
The list of documents you will have to submit in order to pay your road tax is given below:
- A copy of the invoice of the vehicle
- Registration certificate of the vehicle
- No Objection Certificate
- Valid insurance copy of the vehicle
- Form number KMVT14 (if your vehicle is from different state)
- Proof of address such as Aadhaar, Passport, Voter ID, ration card, rental agreement, utility bill, etc.
You cannot drive a vehicle registered in one state in another state for more than 30 days. For example, if your vehicle was registered in Maharashtra, then you cannot drive it in Karnataka for more than 30 days. It is mandatory for you to pay your road tax so that you can continue driving your vehicle in Karnataka. In case you fail to pay the road tax, you will have to pay lifetime road tax with penalty.