What is Toll Tax?

Toll tax, also known as toll, is a charge that vehicle drivers have to pay while crossing certain interstate expressways, tunnels, bridges, and other national and state highways. These roads are termed toll roads and fall under the control of the National Highway Authority of India (NHAI).
Toll tax serves as a mechanism to generate revenue for financing the maintenance and upkeep of these vital transportation infrastructures.
In this article, we will explore the features of toll tax, its calculation methods, and its significance in India’s road network.

Features of toll tax

Here are the salient features of toll tax in India:

1. Indirect tax: Toll tax is a type of indirect tax levied on services. Unlike direct taxes (such as income tax), it is not charged directly to individuals based on their income, capital gains, or revenue.
2. Road construction and maintenance: The primary purpose of toll tax is to finance the construction and maintenance of roads. When you pay toll, you contribute to covering the costs of newly built toll roads and ensuring their upkeep.
3. NHAI control: Toll tax is distinct from the usual road tax collected by the Regional Transport Office (RTO). Instead, the NHAI charges toll tax for roads across state and national highways.
4. Revenue generation: Toll tax generates revenue, which the NHAI distributes to private parties or contractors responsible for maintaining specific stretches of roads. Each toll road project is assigned to a private entity for upkeep.
5. Toll booths and plazas: Toll tax collection occurs at designated toll booths or toll plazas. These facilities provide receipts for payments and often offer additional amenities such as water facilities, toilets, and emergency services.
6. Decreasing charges: Initially, toll tax covers the costs of newly constructed roads. Over time, the toll tax decreases, and only the reduced maintenance fee (typically 40% of the initial amount) is charged.

Toll tax calculation

The calculation of toll tax considers several factors:

1. Vehicle type and size: Toll tax rates vary based on the type and size of the vehicle. Larger vehicles (such as buses and trucks) may incur higher charges due to the potential road damage they cause.
2. Purpose of vehicle: Whether the vehicle is used for personal or commercial purposes affects the toll tax calculation.
3. Load capacity: The load capacity of heavy vehicles influences the toll tax. NHAI considers the possible damage caused by these vehicles and calculates toll based on the load they carry.
4. Passenger Car Unit (PCU): The size of the vehicle determines the PCU, which serves as the basis for toll tax calculation.
5. Exemptions: Pedestrians and two-wheeler owners are exempt from toll tax charges.

Bajaj Finserv BBPS Platform: simplifying toll tax payments with Fastag recharge

The Bajaj Finserv BBPS Platform streamlines toll tax payments through its Fastag recharge service.

Here is how it makes your travel experience smoother:

1. Fastag recharge: Through the BBPS platform, you can easily recharge your Fastag account. Simply log in, select the Fastag recharge option, and top up your account using various payment methods (credit/debit cards, net banking, UPI, etc.).
2. Seamless integration: The BBPS platform integrates with major banks and financial institutions. Link your existing bank account to manage toll payments conveniently.
3. Real-time updates: Get real-time updates on your Fastag balance, recent transactions, and recharge history.
4. Auto-recharge option: Set up auto-recharge to add funds when your Fastag balance falls below a specified threshold.

Conclusion

Toll tax plays a crucial role in funding road infrastructure development and maintenance. As you traverse toll roads, remember that your contribution helps keep India’s highways in good condition, ensuring smoother journeys for all travelers.

Now, paying toll tax is easier than ever with the seamless and secure Fastag recharge facility provided by the Bajaj Finserv BBPS Platform.

So, the next time you pay toll, know that you are investing in better connectivity and safer travel experiences.