What is Road Tax & Toll Tax in India?
All state and national highways in India belong to the government, and
road tax is applicable to all those who use them. The taxes collected
are used to maintain the roads so that drivers and riders have no issues
on the road.
In India, every highway that is a state or national highway, is taxed by
the Indian Government for raising the cost of making as well as the
maintenance of the roads. This is a very essential cost which allows us
to be able to travel comfortably through states, towns and cities
conveniently. Also security on these roads are very important since
highway robbery needs to be controlled in some parts of India. This road
taxation helps to ensure that the cost of road safety and security is
also maintained. There are various kinds of road taxes, that are based
on the state you are traveling in. The most common road tax that is
collected from vehicles, is the toll tax.
Who should Pay Road Tax?
Any individual who has purchased a vehicle for personal or commercial
use must pay road tax. The vehicle that is bought can be a trailer, a
commercial truck, a four-wheeler, a three-wheeler, and a two-wheeler.
Payment of Road Tax Online
The procedure to pay the road tax online is mentioned below:
Visit https://parivahan.gov.in/parivahan/.
Under the ‘Online Services’ section, you will find the ‘Vehicle Related Services’ option, click on it.
In case the vehicle is registered in Delhi or Sikkim, click on
‘Delhi & Sikkim State’. In case the vehicle is registered in any
other state, click on ‘Other States’.
Enter the registration number and click on ‘Proceed’.
On the next page, you will find the option to pay the road tax online.
Toll Tax
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.
Toll Tax Rates
Based on the policies of the National Highways Fee (Determination of
Rates and Collection Rules, 2008, the toll tax rates are supposed to
undergo revision each year and take effect from April 1, the are the
current rates are available on the website and differ based on location
and distances.
Toll Tax Policy
Policy 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 are 390 toll tax collection fee plazas
across the national highways in India. Based on the current policy
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
separate regulatory authority running independently for this taxation.
Toll Tax Exemption List
Any vehicle which has the following people will be exempted 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 Union Territory in India
Chief of Staff holding a full General or equivalent rank
Chairman of the Legislative Council of a State
Speaker of the Legislative Assembly of any State in India
Chief Justice of a High Court
Judge of a 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
A Member of Legislative Assembly of a State in the state premises, with identity proof
A Member of Legislative Council in the borders of their respective State, with identity proof
Awardees of the following recognition, with adequate identity proof:
Param Vir Chakra, Ashok Chakra
Maha Vir Chakra, Kirti Chakra
Vir Chakra
Shaurya Chakra
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
For more information on this, visit TAXAJ
Posted by Aashima
Team TaxaJ
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