New Toll Tax Hike Hits National Highways: What Drivers Need to Know

Toll Tax

New Delhi: Traveling on India’s National Highways has just become more expensive. Starting Monday, drivers will face a 5 percent increase in toll tax at all toll plazas nationwide. This annual revision by the National Highway Authority of India (NHAI), typically set for April 1, was delayed due to the Lok Sabha elections but is now in effect.

According to a senior NHAI official, the new toll rates are effective from June 3, 2024. This adjustment is part of an annual exercise linked to inflation changes based on the Wholesale Price Index (WPI).

India’s National Highway network comprises around 855 toll plazas, regulated under the National Highway Fee Rules 2008. Of these, approximately 675 are publicly funded, while 180 are operated by private concessionaires.

Over the past decade, the government has significantly expanded the national highways, investing billions of dollars. The total length of India’s national highways now spans about 1,46,000 km, making it the second-largest road network globally.

Toll Tax

Toll tax is a fee imposed on drivers using certain interstate expressways, and national, and state highways. Notably, only vehicles with four or more wheels are subject to this fee, while two-wheelers are exempt.

As drivers adjust to the new toll rates, the impact of this hike on travel expenses and overall transportation costs will unfold in the coming weeks.