Toll taxes and road taxes serve the purpose of recovering construction and maintenance costs. However, the distinction lies in the management of these taxes by the central/ state government and the type of roads they are allocated to.
Road taxes, imposed by the state, are collected once during vehicle registration by the RTO. The state government utilises these funds for the upkeep of state roads. Conversely, toll collection falls under the authority of the NHAI (National Highway Authority of India), a central government entity. Toll taxes are collected exclusively from drivers of four-wheeled or larger vehicles using toll roads.
How do Toll Booths Function?
Toll booths, also known as toll houses, toll stations, toll gates, or toll barriers, are mandatory stops for drivers on national/ state highways. These booths collect toll taxes from both domestic and commercial vehicle users, excluding pedestrians. The toll fee varies based on the vehicle's size, weight, and load-carrying capacity, reflecting the potential damage to roads. Notably, toll tax rates are subject to annual revision by the NHAI.
For instance, trucks, being heavier and carrying more load, can cause greater road damage than cars. As a result, pedestrians and two-wheeler drivers are exempt from toll fees due to their minimal impact on roads.
Importance of FASTag for Toll Tax Collection
The Government of India mandated FASTag for all four-wheeled vehicles starting from 15 February 2021. FASTag, utilising RFID technology, facilitates digital toll payments on state and national highways. Affixing FASTag on vehicle windshields ensures cashless transactions, promotes digitalisation, and leads to fuel and time savings. Operated by 23 national banks and governed by NPCI, FASTag automates toll deductions directly from users' bank accounts/ prepaid wallets, eliminating manual tax collection at toll plazas.
This not only streamlines the toll collection process but also enhances the overall experience for vehicle drivers, sparing them the need to stop at every toll booth.
The Bharat Bill Payment System (BBPS) on Bajaj Finserv is a one-stop bill payment eco-system conceptualised by the Reserve Bank of India and operated by the National Payments Corporation of India (NPCI) allows users to recharge their FASTag instantly and securely. Customers can use various payment modes like credit/ debit cards, net banking, Bajaj Pay Wallet, and Bajaj Pay UPI to recharge their FASTag.
Exclusions for Toll Tax
Certain individuals and vehicles are exempt from toll tax payments, as specified by the NHAI. The exemptions include:
- Central and State ministers, including the Prime Minister, Cabinet Ministers, and Members of Parliament
- Judicial authorities such as the Chief Justice of India, Supreme Court Judges, and High Court Judges
- Defence personnel, Army Commanders, Vice-Chief of Army Staff, and equivalent positions
- Recognised military awardees, including recipients of Vir Chakra, Maha Vir Chakra, Param Vir Chakra, Kirti Chakra, Shaurya Chakra, and Ashok Chakra
- Vehicles belonging to NHAI, government agencies, military/ paramilitary or police, fire-fighting departments, ambulances, and funeral vans.
Why should you Use Bajaj Finserv for your FASTag?
You should use Bajaj Finserv for your FASTag for the following:
- Quick and hassle-free
With the Bajaj Finserv BBPS platform, you can recharge your FASTag quickly and effortlessly. - Safe and secure
The Bajaj Finserv BBPS provides a safe and secure payment platform. Your payment details are secure with the platform’s robust security measures. - Multiple payment options
Bajaj Finserv offers multiple payment options, including debit card, credit card, net banking, e-wallet, and UPI. This allows you to choose the payment method that suits you best. - Instant confirmation
After making the payment, the platform immediately confirms the payment through an email and SMS.
Fees and charges
A convenience fee of up to 2% will be charged depending on the transaction amount and payment mode (inclusive of applicable taxes).
Note: For failed transactions, the total amount including charges except taxes is reversed.
