Why is toll tax taken? what is the intention behind it


Business News Desk, Toll tax, often referred to simply as toll, is a fee that motorists pay when 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 Highways Authority of India (NHAI). Toll booths and toll plazas are counters that are used to collect the toll levy which consists of a number of booths.

toll tax
OLLS is a type of indirect tax levied on a service, such as a highway. Tolls are collected to fund the development and maintenance of the road. As a result, it compensates for the cost of newly built toll roads by levying toll taxes. It also charges for the maintenance of toll roads.

toll plaza
Toll tax provides income for NHAI, which is distributed to various private parties/contractors. Toll tax is collected at the toll booth or toll plaza, which also gives a receipt on payment. The private parties in charge of the toll plaza are also responsible for providing water, toilets and emergency services in case of an accident or fire.

The National Highways Authority of India (NHAI) has implemented state-of-the-art technology, which has made it possible to pay tolls quickly and easily. NHAI’s FASTag is a reloadable tag that automatically deducts toll fee when a vehicle passes through a toll gate.

Share this story

Leave a Comment