Vehicle tolls will be collected using a GPS device.
The cost of operating four-wheelers on public roads is anticipated to rise by 14% or Rs 5 per day.
The National Highway Authority of India has raised the toll taxes by more than 10% across the country. The tax is increased under the National Highway Fee (Determination of Rating and Collection) Rules, 2008. India’s toll rates increased by 10.5% on average in FY23. Toll charge price revision differs from region to region and are affected by variations in the Wholesale Price Index of inflation and are modified accordingly. There are presently 599 national roads in India. The toll rates will be highest on the Mumbai-Pune highway, increasing by 18%. Cars will now have to pay Rs 320, instead of Rs 270, to use the Mumbai-Pune Expressway.
Every three years, the motorway’s tolls are collectively changed. The cost of operating four-wheelers on public roads is anticipated to rise by 14% or Rs 5 per day. A weekly rise of Rs 1,150 will follow. Toll revenue is expected to rise by 16–18% in FY23, according to a Crisil study. You might be wondering that while purchasing a car, customers do pay road tax; so then why are they charged with toll tax? Let us inform you that toll tax and road tax are different.
Toll Tax: Drivers must pay a toll tax to traverse interstate expressways, tunnels, bridges, and other federal, state and local roads. The National Highway Authority of India (NHAI) is in charge of these roadways, which are known as toll roads. If the length is less than 60 km, the toll tax value is determined by the distance. Two toll stations are typically situated at a distance of 60 km. Earlier, toll plazas were tasked to collect the taxes but the government has made Fastag mandatory to deduct the price electronically.
Road Tax: To fund the upkeep of India’s road infrastructure, the Indian government levies a tax on the acquisition of a new car. In essence, the Vahan tax is the government retrieving money used for various tasks like providing security and recovery services on Indian roadways.
As informed by the Union Minister for Road Transport, Nitin Gadkari, toll booths will shortly be eliminated nationwide. Vehicle tolls will be collected using a GPS device, which will assess how far the car travelled on the route. As soon as you enter a toll road, the GPS-assisted meter will account for the distance travelled and accordingly, money will be deducted from your account.
Read all the Latest Business News here
