New Toll Tax Rule : The government has introduced a significant change in how toll tax is calculated in India. Starting this year, travellers will now pay a fixed charge per kilometer on national highways and expressways, replacing the earlier toll booth system. This move is aimed at enhancing transparency, reducing congestion, and ensuring a fair toll system for all commuters.
Let’s dive into the details of this new toll tax policy, what it means for daily commuters, and how much you’ll pay on your routes.
What Is the New Toll Tax Rule?
The Ministry of Road Transport and Highways (MoRTH) has rolled out a new toll collection mechanism that charges vehicle owners based on the actual distance traveled on highways rather than fixed rates at toll plazas. This system will be integrated with GPS-based tracking and Fastag data.
Key Features:
- Toll to be charged on a per kilometer basis
- Applicable on all national highways and major expressways
- Implementation using GPS & Fastag technology
- No more waiting at toll booths
- Effective from July 2025 in a phased manner
Why the Change Was Necessary
The old toll system had multiple flaws – from arbitrary charges to long waiting lines. Here are some of the issues that prompted the shift:
- Unfair tolling: Motorists paid full toll even for partial highway use
- Traffic jams: Toll booths caused congestion and delays
- Revenue leakages: Manual handling led to inefficiencies
- Lack of transparency: No clear breakup of charges
With the new system, toll collection becomes digital, fair, and more efficient.
How Much Will You Pay Now?
Under the fixed charge per kilometer model, the toll charges depend on the category of vehicle and the total distance covered. Below is a sample toll rate structure:
Toll Charges Per Kilometer – Sample Rates
| Vehicle Type | Distance (KM) | Old Toll (₹) | New Rate Per KM (₹) | New Toll (₹) |
|---|---|---|---|---|
| Car/SUV | 100 | ₹90 | ₹0.90 | ₹90 |
| Light Commercial | 100 | ₹120 | ₹1.20 | ₹120 |
| Truck (2-axle) | 150 | ₹250 | ₹1.70 | ₹255 |
| Bus | 120 | ₹180 | ₹1.50 | ₹180 |
| Heavy Vehicle (3+) | 200 | ₹350 | ₹2.00 | ₹400 |
| Oversized Vehicle | 200 | ₹450 | ₹2.50 | ₹500 |
| Two-Wheelers | Exempt | Exempt | Exempt | Exempt |
Note: These are indicative rates and may vary by highway or expressway.
How the New Tolling System Will Work
The government is adopting a fully digital, GPS-based system that works as follows:
- Every vehicle with a Fastag and GPS device will be tracked.
- Toll will be calculated automatically based on entry and exit points on the highway.
- The deducted amount will be visible in real-time on your Fastag app or via SMS alerts.
- Vehicles without Fastag may face penalties or higher toll charges.
Benefits for Commuters:
- Pay only for what you use
- No need to stop at toll plazas
- Time-saving and fuel-efficient
- Digital receipts and transparency
Phased Rollout Plan
The government has laid out a clear roadmap for implementation:
Toll Rule Implementation Timeline
| Phase | Region/States Covered | Start Date | Completion Date |
|---|---|---|---|
| 1 | Delhi-NCR & Expressways | July 2025 | September 2025 |
| 2 | Maharashtra, Gujarat, Rajasthan | October 2025 | December 2025 |
| 3 | South India Highways | January 2026 | March 2026 |
| 4 | Eastern & North-Eastern States | April 2026 | June 2026 |
| 5 | All National Highways | July 2026 | Full Nationwide |
What Travellers Should Do Now
If you’re a frequent traveller or a commercial vehicle owner, you need to prepare in advance:
Action Checklist:
- Ensure your vehicle has a valid Fastag
- Update vehicle registration details on the Fastag portal
- Install government-approved GPS devices (if applicable)
- Keep track of toll deductions via SMS and mobile apps
- Stay updated with NHAI guidelines and toll rates
Possible Concerns and Government’s Clarifications
While the system brings multiple advantages, users have raised some questions:
Common Concerns:
- Data privacy due to GPS tracking
- Device costs for older vehicles
- Network glitches and wrong deductions
The government has clarified that:
- Data will be encrypted and stored securely.
- GPS devices will be subsidized for older vehicles.
- Dispute resolution mechanisms will be provided for incorrect deductions.
The new toll tax rule marks a major shift in India’s road infrastructure strategy. With its fair, transparent, and usage-based model, this reform aims to improve travel efficiency and reduce commuter stress.
Whether you’re a daily commuter, long-distance traveler, or transport business owner – staying informed and adapting early will ensure smoother journeys ahead.
Toll rates, implementation timelines, and technical procedures mentioned in this article are based on official announcements and may vary based on road type and future updates. Readers are advised to verify with the official NHAI or MoRTH website for latest details.
How does the new toll tax rule impact travelers' expenses?
Travelers now pay a fixed charge per kilometer to comply.
What is the fixed charge rate per kilometer under the new toll tax rule?
Fixed charge per kilometer for travelers to adhere to.
How will the new toll tax rule affect travelers' route planning?
It may influence route choices due to fixed charges per kilometer.
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