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Road Tax & Toll Tax – Rules & Regulations In India
The Government of India imposes Road Tax on all vehicles that use the country’s roads. There are also Toll Taxes or Toll Charges in India. These toll taxes are paid at toll plazas.
Road tax is a tax levied on the use of roads, roadsides, and road surfaces. The amount of tax varies by state and is based on the weight of the vehicle, seating capacity, age of the vehicle, and engine type. Toll taxes are collected at toll plazas, usually through an RFID enabled tag called the ‘FASTag’ that is usually stuck to the vehicle’s windshield. The amount of toll tax based on the length of the toll road being used.
About Road tax & Toll tax
Road Tax – What, Why & How
Road tax is collected from vehicles that use motorways, national highways, state highways and other roads. The government uses the money collected from road tax to maintain, repair and expand roads.
Road tax is paid by all newly purchased vehicles at the time of vehicle registration. It is also paid by owners when they move to a different state and register the vehicle under the new RTO.
Why Should You Pay Road Tax?
India has the second largest network of roads in the world, totalling a whopping 58.98 lakh kilometres that runs across the country. Road tax is necessary for the government to provide roads, which in turn helps increase the productivity of India’s road network. Without any taxes, the government would be unable to maintain and repair roads. This would result in poor road conditions and traffic chaos. Taxing vehicles that use roads helps raise revenue for the government, which it uses to improve and expand roads.
Roads are the backbone of a country’s economy. They allow people to commute to work, travel to school, and access medical care. Roads also help develop the economy by allowing people to sell goods and services to more customers. If people don’t have access to roads, it limits their ability to participate in the economy.
How Much Is The Road Tax In India?
Road tax in India is a State matter. It is determined based on the following factors -
- Engine Capacity
- Seating Capacity
- Age Of The Vehicle
- Weight Of The Vehicle
How To Pay Road Tax On My Vehicle?
When you buy a vehicle, the ‘On-Road Price’ of the vehicle already includes the ‘Lifetime Road Tax’, for that particular state. The tax is then paid on your behalf by the dealer. However, if you move to a new state, you need to pay road tax for that state, based on that particular state’s road tax rates. But you are allowed to ride the vehicle in the new state, without paying road tax, for a period of up to 6 months. You can make an offline payment by going to the local RTO office or make an online payment through the RTO website of the state in which your vehicle is registered.
Road Taxes In Some Of The Popular Indian States
Road Tax Fees in New Delhi
| Cost of Vehicle | Road Tax |
|---|---|
| Up to Rs. 6 Lakh | Petrol Cars - 4%, Diesel Cars - 5% |
| Rs. 6 to 10 Lakh | Petrol Cars - 7%, Diesel Cars - 8.75% |
| Above Rs. 10 Lakh | Petrol Cars - 10%, Diesel Cars - 12.5% |
Road Tax Fees in Uttar Pradesh
| Cost of Vehicle | Road Tax |
|---|---|
| Up to Rs. 10 Lakh | 8% |
| Above Rs. 10 Lakh | 10% |
| Cost of Vehicle | Road Tax |
|---|---|
| Up to Rs. 10 Lakh | CNG - 7%, Petrol - 11%, Diesel - 13% |
| Rs. 10 to 20 Lakh | Petrol - 12%, Diesel - 14% |
| Cost of Vehicle | Road Tax |
|---|---|
| Up to Rs 10 Lakh | 12% |
| Above Rs. 10 Lakh | 14% |
| Cost of Vehicle | Road Tax |
|---|---|
| Up to Rs. 5 Lakh | 6% |
| Rs. 5 to 10 Lakh | 8% |
| Rs. 10 to 15 Lakh | 10% |
| Rs. 15 to 20 Lakh | 15% |
| Above Rs. 20 Lakh | 20% |
| Cost of Vehicle | Road Tax |
|---|---|
| Up to Rs. 5 Lakh | 13% |
| Rs. 5 to 10 Lakh | 14% |
| Rs. 10 to 20 Lakh | 17% |
| Above Rs. 20 Lakh | 18% |
| Cost of Vehicle | Road Tax |
|---|---|
| Up to Rs. 10 Lakh | 10% |
| Above Rs. 10 Lakh | 15% |
Toll Tax or Toll Charges
Toll Tax, often known as a toll, is a fee that vehicle drivers must pay while crossing certain interstate expressways, tunnels, bridges, and other national and state roadways. These highways are known as toll roads and are managed by the National Highway Authority of India (NHAI). Toll booths and toll plazas are the counters used to collect the toll levy which consist of several booths.
Two toll booths are normally positioned 60 kilometres apart, where one length of a toll road finishes and the other begins. A toll road stretch of sixty kilometres or less is usual, and the toll tax is computed accordingly. If the distance is less than 60 kilometres, the toll tax is calculated based on the precise distance.
Why Do We Pay Toll Charges?
Tolls are a sort of indirect tax imposed on a service, such as highways. Tolls are collected to fund road development and maintenance. As a result, it compensates the costs of newly constructed toll roads by imposing a toll tax. It also charges for the upkeep of toll roads.
The toll tax provides income for the NHAI, which is distributed to various private parties/contractors. As a result, the latter is in charge of maintaining a single stretch of road, or as it is commonly referred to - 'one toll road project.'
Toll tax is collected at a toll booth or a toll plaza, which offers a receipt for the payment. The private parties in charge of the toll plaza are also in charge of providing water, restrooms, and emergency services in the event of an accident or fire.
What Is FASTag? What Are The Key Benefits Of Using It?
The National Highways Authority of India (NHAI) has implemented cutting-edge technology that makes it possible to pay tolls quickly and easily. The NHAI's FASTag is a reloadable tag that automatically deducts toll charges for a vehicle when it passes through a toll gate.
FASTag is an incredibly simple, prepaid tag that allows automatic toll collection and allows you to travel through the toll plaza without pausing for cash transactions. FASTag is an ideal choice for trouble-free trips on national highways.
FAQs:
1. Which Indian state has the highest road tax?
For charging the road tax, each state has its own set of rules and regulations. Karnataka has the highest tax rate in India, at 14.43%.
2. What is the formula for calculating road tax?
The road tax is computed using a number of parameters, including the purchase price, engine capacity, seating capacity, unladen weight, and purchase price. When acquiring a vehicle, the government would collect a 28 % GST as well as an additional cess based on engine capacity (1% for over 1200cc car, 3% for 1200 - 1500cc car and 15% for above 1500cc one). Electric vehicles are subject to a 5% tax.
3. Is road tax and toll tax the same?
No. Road tax is collected by the RTO for using roads within a state. Toll tax is collected for using inter-state highways.
4. Do local vehicle users in the proximity of the toll plaza have to pay the toll tax as well?
Local car users registered in RTOs within 20 kilometres are exempt from the toll levy. However, this is only when the application and the required documents have been submitted. They are issued a low-cost monthly pass that is valid for five years for government vehicles and one year for private vehicles.
5. Where can I buy Fastag?
You can buy Fastag from various service providers. Everyone's preferred method is to go through their bank. FASTag can also be obtained through Paytm. To allow purchases, booths are set up at each toll plaza.