Road and Toll tax

All state and national highways in India comes under the government, and road tax is applicable to all those people who use them. The taxes collected are used to maintain the roads so that drivers and riders both have no issues on the road.

In India, every highway that is a state or national highway, is imposed by the Indian Government for raising the cost of making as well as maintenance of the roads. This is very essential cost which allows us to be able to travel comfortably through any state, town and city conveniently. Also the security on these roads are very important since highway robbery needs to be stopped in some parts of India. This road taxation helps to ensure that cost of road safety and security is also maintained. There are different kinds of road taxes, that are based on the state you are traveling in. But the most common road tax that is collected from vehicles, is toll tax.

  1. Toll Tax Rates

Based on the rules and policies of the National Highways Fee (Determination of Rates and Collection Rules, 2008, the toll tax rates are supposed to undergo into revision each year and take effect from April 1, The current rates are available on the website and vary based on the location and distances.

2. Toll Tax Policy

Policy and rules 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 were 390 toll tax collection fee plazas across the national highways in the whole country. Based on the current policy’s 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 any separate regulatory authority running independently for this taxation.

3. Toll Tax Exemption

Any vehicle which has the following people will be exempted from 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 particular Union Territory in India
  • Chief of Staff holding a full General or any equivalent rank
  • Chairman of the Legislative Council of any State
  • Speaker of Legislative Assembly of any State in India
  • Chief Justice of any High Court
  • Judge of any 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
  • Any Member of Legislative Assembly of a State in the state premises, with a identity proof
  • Any Member of Legislative Council in the borders of their respective State, with a identity proof
  • Awardees of the following recognition, with adequate identity proof:

1.Param Vir Chakra

2. Ashok Chakra

          3. Maha Vir Chakra

          4. Kirti Chakra

          5. Vir Chakra

          6. Shaurya Chakra

4. 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

Summary

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.

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