FASTags Will Soon Charge You Per Km Travelled, Not Flat Toll Charge


Sheetal Bhalerao

Sheetal Bhalerao

Jun 14, 2025


India seems to be all set to overhaul its toll collection system as the Ministry of Road Transport and Highways is working on a new kilometre-based toll policy that would replace the current flat-rate model reportedly.

FASTags Will Soon Charge You Per Km Travelled, Not Flat Toll Charge

The vehicle owners will have to pay the tolls strictly based on the number of kilometres travelled, not on fixed slabs as per this newly proposed system.

So far, the government has not released any official notification, but multiple media reports indicate that the policy is under serious consideration.

How Does This Kilometre-based Toll Policy Work?

Basically this new policy proposes a dynamic, usage-based tolling system which will be employed on national highways and expressways.

So the drivers would pay only for the distance they cover instead of paying for an entire toll stretch regardless of how far one travels.

Moving ahead, this implementation will be supported by advanced toll collection infrastructure as per the latest media report.

Besides this, it would include 

  • FASTag scanners at entry and exit points
  • High-resolution surveillance cameras to track vehicle movement
  • An upcoming system based on Automatic Number Plate Recognition (ANPR) technology

How Is This Policy Different From Current One?

At present, the toll charges are being calculated based on a fixed length of highway, typically around 60 kilometres, under the National Highways Fee Rules, 2008.

You need to pay the same toll, whether you travel 5 km or 59 km.

This would change as under the proposed system, vehicle owners will pay tolls based strictly on the number of kilometres travelled, not on fixed slabs.

On top of that, they won’t apply any minimum threshold, so the cost of short-distance travel on highways could become significantly more affordable.

Implementation of this policy marks a substantial shift toward fair pricing and usage-based taxation in road transport.

This latest policy would be bringing a lot of benefits including 

  • Faster travel with no waiting at toll plazas
  • Lower fuel consumption due to reduced idling
  • Minimal congestion on busy expressways
  • Reduced disputes over incorrect deductions or toll mismatches

If the government decides to implement this policy then it would bring India closer to global best practices in highway tolling systems.


Sheetal Bhalerao
Sheetal Bhalerao
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