Navigating Toll Taxes and Toll Plaza: Costs, Benefits and Key Considerations

April 27, 2024, 5:47 pm | Updated May 6, 2024, 6:15 pm IST
Navigating Toll Taxes and Toll Plaza: Costs, Benefits and Key Considerations
Listen to this article

Table of Contents


A toll tax is a usage charge for cars utilizing specific highways or bridges.  Usually, a designated toll booth or plaza is where toll taxes are collected. These roads and bridges require maintenance and operation costs to be paid for out of the money collected from toll taxes. Toll taxes do not apply to some vehicles, though, including fire trucks, police cars, ambulances, and so on.

What is Toll Tax?

The National Highway Authority of India (NHAI) levies toll taxes. Tolls are one way to raise money for infrastructure upkeep and repairs. Among the factors influencing the toll tax rate are the type of vehicle, the distance traveled, and the time of day. The regulations are determined by the NHAI and are subject to modification depending on the kind of road and specific toll booth. By paying tolls, drivers help maintain and repair these essential pieces of infrastructure.

Features of Toll Tax

Some of the features of Toll Tax are provided below;

  • Toll taxes are imposed on both products and people as an indirect tax.
  • The money collected from toll taxes is used by state-sponsored agencies to construct new highways and maintain existing ones.
  • Toll tax is collected at toll booths that issue payment receipts.
  • The NHAI divides toll tax money among a number of contractors or private companies in charge of maintaining a certain road segment.
  • Toll plaza maintenance is the responsibility of private organizations who handle drinking water, fire safety, sanitation, restrooms, and other small details.

Collection of Toll Tax

The toll tax amounts are not fixed and change based on the vehicle's size and carriage weight. The vehicle's intended usage, whether for business or pleasure, is also taken into account when calculating the toll tax.

The damage that large cars inflict on a highway is taken into consideration by the NHAI when determining the toll rate. Thus, the load capacity of a toll tax is an important consideration. The size of the vehicle also affects the Passenger Car Unit, which sets the toll price. 

Toll Tax Rules

Some of the most significant laws and guidelines pertaining to toll taxes are listed below:

  • A fair and reasonable toll should be imposed on all users. Prices should be determined by the type of car, the distance traveled, and the time of day. Regular reviews are necessary to ensure that toll prices remain equal and fair.
  • The placement of toll plazas must be such that they do not cause excessive traffic or safety risks. The location of a toll plaza should take traffic congestion, security, and environmental effects into account.
  • Vehicles used for emergency response, military service, and public transit may not be subject to toll fees. Additionally, discounts could be given to locals or repeat consumers.
  • There are a number of ways to collect toll tax, such as using cash or electronic toll collection systems. Toll booths must be equipped with the technologies required to securely and efficiently collect toll taxes.

Advantages of toll taxes

These are toll tax's main characteristics and advantages:

  • The government receives a large portion of its funding from tolls, which can be utilized for associated operations such as road maintenance and repair and development initiatives.
  • Road markings, lighting, and signage upgrades can all lower the frequency of traffic accidents and fatalities and can be paid for using toll money.
  • Toll taxation can help reduce the environmental impact of road traffic by encouraging carpooling and public transport through toll reductions.


Tolls offer an impartial and effective method of generating funds for new road construction and maintenance, providing dependable and safe transport for all road users. Along with paying your toll, managing your other personal expenses is also important. For more information on toll taxes contact the lawyers near your area.


  1. What are the rules of toll tax in India?
    The National Highways Authority of India (NHAI) states that using FASTags is required. Since February 2021, all private and commercial cars must abide with the rule. The toll price will be increased in accordance with the new FASTag regulations NHAI if the FASTag is not accepted at the toll plaza.

  2. What is 10 second rule in toll plaza?
    When it takes longer than 10 seconds to get to the toll booth or when there is a waiting list longer than 100 metres, cars are not required to pay a toll at toll plazas as set forth by the National Highways Authority of India (NHAI).

  3. Which vehicles are exempted from toll tax?
    Government cars, emergency vehicles such as ambulances and fire department vehicles, and VIP convoys are exempt from toll taxes in India. In addition, some CNG and electric vehicles, as well as police and military vehicles used for official purposes, would not be required to pay toll charges, depending on state and local laws.

  4. Is toll tax free for local residents?
    Yes, if a car owner lives 20 kilometers or fewer from a toll plaza on a national highway, they are eligible to apply for a toll tax relief. They have to present the vehicle's Registration Certificate (RC) and legitimate evidence of address.
Written By:


Recommended Free Legal Advices
question markLocal Pass at Toll Plaza - Moratandi (Pondy-Tindivanam Highway) 1 Response(s)
Dear Sir, You may contact local advocate having knowledge of local rules and regulations.
question markNational Highway Toll Plaza - Local Residents - Free Pass - limit in Km - reg 1 Response(s)
Dear client, Concessions to local/frequent users are extended as welfare measures. There may be variation in the concessions available as these have been provided at different times under different fee rules and provisions of concession agreement.
question markSeeking advise regarding breach of CPA 2019 ACT 1 Response(s)
Dear Sir, You may get issue a legal notice and claim for compensation if you have purchased any product which is mispleading or file a PIL or any other petition before the High Court seeking a direction to close the same or to seek investigation upon the working of such website. I could have explained more if background is known to me. If background is made known in full then legal experts will be in position to understand correctly. Moreso, the background must be in brief. Please give me FIVE STAR if satisfied by my answers.
question markNew Water Connection for the society 2 Response(s)
Dear Sir, Since yours is a registered housing society as such in the meeting held by RWA relevant resolutions are to be passed and action is to be initiated in respect of disputed issues.
question markCan a WS be allowed after three and a hal years 1 Response(s)
Dear Client, Here are some insights into your queries: 1. Can the honorable judge allow a WS after three and a half years? In general, courts have the discretion to allow or disallow a written statement (WS) even if it is filed late. The principle of natural justice and fairness may be considered by the judge. If the opposite party can provide a reasonable explanation for the delay in filing the WS, the judge may allow it. However, it ultimately depends on the facts and circumstances of your case, and the judge's discretion. 2. In case the judge allows the opposite party to file WS, what are the costs we can ask for? How do we calculate the costs? Who decides the costs? Do I ask for the costs, or does the honorable judge decide it? If the judge allows the opposite party to file a late WS, you may request costs as compensation for the delay and expenses caused by the late filing. The calculation of costs can vary and may include legal fees, court fees, and any other expenses incurred due to the delay. You can request these costs in your response to the late WS, and the judge will decide whether to grant them and the amount to be awarded. The judge typically decides the costs based on the merits of your case and the expenses you have incurred. 3. Will these costs be given to us by the opposite party or deposited in court? If the judge awards costs in your favor, it is usually the responsibility of the opposite party to pay these costs directly to you. However, if the opposite party fails to comply with the court's order to pay costs, you may need to take further legal action to enforce the order. 4. In case the honorable judge allows WS, where do we go in appeal: The appellate cooperative court or the high court? If you are dissatisfied with the judge's decision to allow the late WS, you may consider appealing the decision. In India, the first appellate authority is typically the District Court or the appropriate Cooperative Appellate Court, depending on the specific nature of the case. If you are not satisfied with the outcome at the appellate level, you can then consider approaching the High Court for further appeal.