Why do we pay toll tax?

Why should we pay toll when we pay road tax?

In India, a fee is levied for lifting the cost incurred in constructing and maintaining every state or national highway. This fee is known as toll and is a kind of tax. After the recovery of the highway’s cost, the fee is collected at a lessened rate of 40 per cent, for the general maintenance of the roads.

Why does Indian government take toll tax?

Road Tax & Toll Tax. … 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.

What is difference between toll tax and road tax?

Difference between a Road Tax and a Toll Tax

As mentioned earlier, toll tax is levied only on certain specific tollways. For instance, national or state highway roads for their maintenance and covering the construction costs. It is for the roads under NHAI whereas the road tax is for the state roads.

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Who is toll tax free in India?

The National Highways Authority of India (NHAI) has introduced fresh guidelines under which toll operators have to ensure the service time per vehicle is not more than ten seconds. If a four-wheeler vehicle waits more than ten seconds at the toll booth, then they will be exempted from making the tax payment.

How can I check my FASTag balance?

Just check the mails to check FASTag balance. Call customer care: You can also call HDFC Bank customer care number 1800-120-1243 to enquire about your FASTag balance. For a quick FASTag balance check, give a missed call to 720-805-3999 with your registered mobile number.

Who is responsible for road tax?

Who is responsible for paying the vehicle excise duty (road tax)? Explanation: The registered keeper of the vehicle is responsible for paying the vehicle excise duty or making a Statutory Off-Road Notification (SORN) if the vehicle is to be kept untaxed and off the road.

Are tolls considered a tax?

A toll is a user fee, not a tax.

You only pay a toll when you choose to drive on a toll road for a higher level of convenience, reliability or safety. Toll customers, through the fuel they consume, also pay their share of local, state and federal taxes to fund non-toll roads that are open to all.

Which state has lowest RTO tax?

Which state has the lowest RTO tax? The north-east region has the lowest road tax. Himachal Pradesh is among the lowest in India.

Is toll tax a direct tax?

This tax is called Customs Duty. Toll Tax is levied either by the state or central governments on roads and bridges. … Both Direct and Indirect Taxes are essential for the economic growth of the country.

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What happens if you dont buy FASTag?

Those who don’t install FASTag in their vehicles or have a tag that does not work will have to pay twice the fee for the category of the vehicle they are driving. To ensure smooth transition to the FASTag system, the government said all fee lanes in toll plazas on National Highways will be able to read the tags.

Can I Go Without FASTag?

All you need to know. The government, while mandating the FASTag, said that the vehicles crossing toll plazas, from the dedicated FASTag lane, without FASTags will have to pay double fees applicable to the type of vehicle. … Vehicles, without FASTags, will be charged twice the original fee on passing a toll plaza.

Can I buy FASTag at toll plaza?

Yes. One can buy FASTag from a toll plaza.