Search
Advertisement
Government clarifies toll tax policy amid concerns over high rates

Government clarifies toll tax policy amid concerns over high rates

The Ministry of Road Transport and Highways acknowledged that toll charges are subject to annual revisions, primarily influenced by the Wholesale Price Index (WPI), which reflects inflationary trends.

Chetan Bhutani
Chetan Bhutani
  • Updated Dec 6, 2024 3:18 PM IST
Government clarifies toll tax policy amid concerns over high ratesTo provide some relief to citizens, the government offers user fee discounts and monthly passes as per the National Highways Fee (Determination of Rates and Collection) Rules, 2008.

Strap: The Ministry of Road Transport and Highways acknowledged that toll charges are subject to annual revisions, primarily influenced by the Wholesale Price Index (WPI), which reflects inflationary trends. It emphasized that the user fees collected are essential for maintaining road infrastructure, ensuring smoother travel, and boosting logistical efficiency across the country.

Advertisement

Chetan Bhutani

The Ministry of Road Transport and Highways has clarified the rationale behind toll tax rates and the measures in place to alleviate the economic strain on citizens. Responding to a query in Parliament by MP Iqra Choudhary, the Ministry provided details on how toll rates are determined and justified.

According to the Ministry, toll rates are calculated based on several factors, including the configuration of the highway (two-lane roads with paved shoulders or multi-lane highways), the length of the road section, the presence of bypasses or tunnels, and the type of vehicles using the road, such as cars, buses, or multi-axle trucks. These rates are determined in line with the provisions of the National Highways Fee Rules, ensuring a standardized approach for charging road users.

Advertisement

The Ministry also addressed concerns about toll rates contributing to inflation and increasing the public's financial burden. It acknowledged that toll charges are subject to annual revisions, primarily influenced by the Wholesale Price Index (WPI), which reflects inflationary trends. While these adjustments aim to cover the operational and maintenance costs of highways, they can indirectly add to the economic burden on commuters. However, the Ministry emphasized that the user fees collected are essential for maintaining road infrastructure, ensuring smoother travel, and boosting logistical efficiency across the country.

To provide some relief to citizens, the government offers user fee discounts and monthly passes as per the National Highways Fee (Determination of Rates and Collection) Rules, 2008. These provisions are designed to make frequent highway use more affordable for regular commuters and reduce the overall financial impact on the public.

Follow us on

ABOUT THE AUTHOR

Chetan Bhutani
Chetan Bhutani

Chetan Bhutani is a New Delhi-based economic policy journalist with ten years of experience in reporting and breaking stories about economic policy pertaining to India's infrastructure and financial sector, including highways, finance, railways, shipping, telecom, petroleum, and natural gas and currently works as an Associate Editor for Business Today TV. He is a journalist who works across multiple platforms and languages and offers in-depth coverage of the auto industry, regulations, new products, and reviews. Also, he has extensively reported about the actions taken by investigative authorities in relation to corporate and bank frauds as well as significant insolvency cases. Bhutani keeps a tight eye on all aspects of the government's public policies, from their creation to their implementation. In addition to his job, Chetan enjoys scheduling official appointments, travelling, going on road trips, playing cricket, and squash. Also, he is passionate about addressing climate change and road safety. He is a public policy enthusiast and has a master's degree in Public Administration.

Published on: Dec 6, 2024 3:18 PM IST