In India, some highways have toll plazas where drivers pay a fee. This isn't a random tax - it's like a contribution to a road improvement fund. The money collected from tolls goes towards building and maintaining these high-quality expressways, making journeys faster and more comfortable. So, paying a toll translates to smoother rides and less time stuck in traffic.

Interestingly, not all vehicles are subject to toll tax. Two-wheelers and workhorses like tractors often get a free pass.

Purpose of toll tax collection in India

The primary purpose of toll tax collection in India is to generate revenue for the construction, maintenance, and operation of highways and other infrastructure projects. Toll taxes ensure that the users of these roads contribute to their upkeep, thereby reducing the financial burden on the government. This system helps in maintaining high-quality road networks, ensuring safety, and facilitating smooth transportation across the country.

Benefits of toll tax for infrastructure development

Toll tax plays a crucial role in infrastructure development in India. Here are some key benefits:

1. Funding for road projects: Toll revenue provides a steady stream of funds for the construction and maintenance of highways, bridges, and tunnels, ensuring continuous improvement and expansion of the road network.
2. Enhanced road quality: Regular maintenance funded by toll collections leads to better road conditions, reducing vehicle wear and tear and improving travel safety.
3. Economic growth: Improved infrastructure facilitates efficient transportation of goods and people, boosting trade and commerce, and contributing to overall economic growth.
4. Reduced government burden: By shifting some of the financial responsibility to road users, toll taxes reduce the reliance on government budgets for infrastructure projects, allowing for better allocation of public funds.

Methods to pay toll tax: FASTag and alternatives

In India, toll tax can be paid through various methods, with FASTag being the most popular and efficient option:

1. FASTag: FASTag is an electronic toll collection system that uses Radio Frequency Identification (RFID) technology to automatically deduct toll charges from a linked account as the vehicle passes through a toll plaza. This system significantly reduces wait times and congestion at toll booths. FASTags can be purchased and recharged through banks, toll plazas, and online platforms.
2. UPI (Unified Payments Interface): UPI platforms like PhonePe, Google Pay, and BHIM UPI offer a seamless way to recharge FASTags. Users can link their bank accounts to a UPI-enabled app and proceed with the recharge by entering their FASTag UPI ID.
3. Internet and mobile banking: Most banks that issue FASTags provide the facility to recharge them via their internet and mobile banking platforms. Users can log in to their bank’s portal or app, navigate to the FASTag section, and complete the recharge.
4. Offline methods: FASTags can also be purchased and recharged offline at bank branches, toll plazas, and through vehicle dealers. This method requires presenting documents like the Vehicle Registration Certificate (RC), a passport-sized photograph of the vehicle owner, and KYC documents.

By adopting these methods, road users can ensure a hassle-free and efficient toll payment experience, contributing to the overall improvement of India's transportation infrastructure.

FASTag for a temporary registration number

FASTag, a technology-driven system, is now indispensable for paying toll taxes. Obtaining a FASTag has been simplified for vehicles with a temporary registration number.

This initiative ensures that even newly purchased vehicles without a permanent registration certificate can traverse the highway smoothly, utilising the FASTag lanes for quicker toll payments.

Pay toll tax on Bajaj Finserv

The Bajaj Finserv BBPS platform, makes paying the toll tax easier with seamless FASTag recharge options.

The Bajaj Finserv BBPS platform is a convenient and secure way of recharging your FASTag online. With enhanced security and multiple payment options such as debit/credit cards, netbanking, and UPI, recharging your FASTag is now a breeze.

Benefits of using the Bajaj Finserv platform

The Bajaj Finserv platform offers several advantages when paying your ‘toll tax’. There are several benefits to using this system. The first is a faster payment process that saves time and avoids queues.

Secondly, it allows you to pay wherever you are, which is perfect for last-minute journeys.

But before you start spending, remember that using the Bajaj Finserv platform, you would be charged a convenience fee of up to 2% per transaction (inclusive of applicable taxes) *.