Toll Taxes Can Be Reduced Across India; New Toll Policy Coming Next Week


Mohul Ghosh

Mohul Ghosh

Apr 09, 2025


Union Minister Nitin Gadkari has announced that the government is ready to unveil a new toll policy that will significantly benefit daily commuters and reduce toll charges. Speaking at the News18 Rising Bharat Summit, Gadkari stated, “We are changing the process of toll… I believe it will be announced in the next 8–10 days.”

Toll Taxes Can Be Reduced Across India; New Toll Policy Coming Next Week

📉 Toll Burden To Be Reduced

The minister assured that the upcoming changes will provide financial relief, a long-standing concern for people using National Highways. The reform aligns with previous government efforts to make tolling more consumer-friendly while sustaining funding for India’s rapidly expanding road infrastructure.

📈 Toll Revenue on the Rise

India’s toll collection has surged to ₹64,809.86 crore in FY 2023–24, up 35% from the previous year and more than double the ₹27,503 crore collected in FY 2019–20. This boom has triggered demands for a more transparent and fair toll structure.

🛰️ GNSS-Based Tolling to Replace FASTag by 2025

The centrepiece of the upcoming reform is a Global Navigation Satellite System (GNSS)-based toll collection, which is expected to launch by April 2025. This advanced system will:

  • Track vehicle movement via onboard GNSS units
  • Calculate toll based on distance travelled
  • Eliminate physical toll booths
  • Help reduce traffic congestion
  • Offer a 20 km daily toll exemption for local commuters

The National Highways Authority of India (NHAI) will manage the rollout, with tech support from ISRO.

🌱 Part of a Bigger Green Push

In addition to toll reforms, Gadkari reiterated his push for a green economy. He has proposed:

  • 5% GST on hybrid vehicles
  • 12% GST on flex engines
  • A plan to phase out 36 crore petrol and diesel vehicles

These ideas are under review by the Finance Ministry as part of a wider strategy to boost eco-friendly transport.

📅 What’s Next?

While specifics of the toll policy remain confidential, its launch within the next two weeks could reshape highway travel across India—offering commuters smoother rides, lower costs, and a futuristic infrastructure overhaul.


Mohul Ghosh
Mohul Ghosh
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