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Road Tax: All You Need to Know

Most of us are aware that every highway in India that is the state highway or the national highway is taxed by the Indian Government for raising funds and their maintenance. These funds are necessary to provide certain infrastructure and needs. It also allows us to travel to travel comfortably through states, towns, and cities conveniently. Besides, security on these roads is of utmost importance since cases of highway robbery is high in some parts of India. Road Tax, in turn, helps to ensure that the cost of road safety and security is maintained. Thus, the most common road tax that is collected from vehicles, is the toll tax.

Note: The Road Tax is calculated based on factors like engine capacity, seating capacity, unladen weight and cost price. However, all states will have different rules and regulations for with regards to taxes.

A Car Insurance is mandatory for every vehicle registered as per The Motor Vehicle Act, 1988.

Toll Tax in India

Since tax is mandatory and is charged in toll plazas along the highways across India, you may find a difference in rates because each toll plaza is accountable for a certain distance of the road. However, certain people like the VIP’s in the country are exempted from taxation (list attached in the last section of this page).

Toll Tax Rates

The Toll taxes in India undergo a revision each year from April 1 which is based on the policies of the National Highways Fee (Determination of Rates and Collection Rules, 2008).

Toll Tax Policy

The Toll Tax policy is based on the National Highways Act, 1956 (48 of 1956) provision and on the National Highways Fee (Determination of Rates and Collection) Rules, 2008. Until the year 2016 there were 390 toll tax collection fee plazas across the national highways in India. And based on the current policy literature any road with 6 lanes with 4 lanes already running is tolled even if the highway is not fully completed. However, as of 2016, there is no separate authority running independently for this taxation.

Toll Tax Exemption List

The Toll Tax has a huge list of the following people who are exempted toll tax across India.

  • President of India
  • Prime-Minister of India
  • Vice-President of India
  • Chief Justice of India
  • Governor of any State in India
  • Governor of any State in India
  • Cabinet Minister of the Union
  • Member of Parliament
  • Minister of State of the Union
  • Lieutenant Governor of any Union Territory in India
  • Judge of the Supreme Court
  • Speaker of the Legislative Assembly (of any Indian state)
  • Chief of Staff - a full General or equivalent rank
  • Chairman of the Legislative Council of a State
  • Chief Secretary to State Government (within respective State)
  • Judge of a High Court
  • Foreign dignitary on State visit
  • Army Commander
  • Vice-Chief of Army Staff
  • Chief Justice of a High Court
  • Speaker of the House of People
  • A Member of Legislative Council in the borders of their respective State, with identity proof
  • Secretary, House of People
  • Secretary to the Government of India
  • A Member of Legislative Assembly of a State (inside state borders)
  • Secretary, Council of States
  • Awardees with following recognition:
    • Param Vir Chakra, Ashok Chakra
    • Maha Vir Chakra, Kirti Chakra
    • Vir Chakra
    • Shaurya Chakra

In addition to the above, vehicles which are exempted from the toll tax include the following:

  • Vehicle used as ambulance
  • Vehicle under or with a passenger from the Ministry of Defense. This includes those who are eligible for toll exemption as per the provisions of the Indian Toll (Army and Air Force) Act, 1901 and laws.
  • Vehicle belonging to any other Government agency or organization for purposes of survey, inspection, operation or construction and maintenance of national highways.
  • Central and State armed forces in uniform.
  • Vehicle belonging to the National Highways Authority of India.
  • An executive Magistrate
  • Motor vehicle of fire-fighting department.
  • Vehicle used as funeral van.

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States and Union Territories: Road Tax

Andhra Pradesh Road Tax

  • A number of factors are considered while computing the road tax that you pay in this city. The key factors include make and manufacture of the vehicle, fuel, engine capacity, age of the vehicle, purpose of use of the vehicle (i.e. commercial or personal use) etc. These factors form the base for calculating road tax. Road tax is applicable on two and four wheeler and all other types of vehicles.

  • You can pay road tax to the Regional Transport office at the time of registering your vehicle. Also, it can be paid on the official website of Andhra Pradesh Transport department.

Assam Road tax

  • Assam shares its borders with Bhutan and Bangladesh which includes forests and other breathtaking views for residents and travelers. Guwahati is a well-known tourist place in Assam along with some famous temples, etc. The Road tax is taken care by the provisions of The Assam Motor Vehicle Taxation Schedule, with different taxes for different vehicles.

  • The transport department in Assam will levy one-time road tax which is equivalent to a certain percentage of the original vehicle cost. The owner of the vehicle is supposed to pay this tax before registering their vehicle in the state.

  • Road tax in Assam can be paid to any regional transport office in Assam. On payment of tax, you receive a challan which must be kept as a proof of payment.

Bihar Road tax

  • The road tax in Bihar is taken care of by the transport department. In case an individual is keen on paying road tax, he/she can do that by approaching under whose jurisdiction they fall.

  • Also, vehicle owners who have a State Bank of India account can log on to Bihar Transport department, which is the official website to pay this tax directly from their account. Besides, this service is now implemented in 5 districts.

Chhattisgarh Road tax

The Chhattisgarh road taxes are levied on the basis of Chhattisgarh Motoryan Karadhan Adhiniyam, 1991 and is levied on all the vehicle owners. Also, the taxes are paid on a lifetime basis which allows you to run your vehicle on the state roads for a lifetime.

Goa Road Tax

  • Goa is one of the most well-known tourist destination not only in India, but also world-wide. Taxes can be paid depending on the basis of size, weight, engine power, price of your vehicle.

  • Goa tax can also be paid online through the official Directorate of Transport, Goa website.

Gujarat Road Tax

  • Gujarat is now considered as one of the most developed states in India. It has well connected network of road ways that is spread across the state. It collects tax from all vehicle owners like the transport and non-transport vehicles.

  • The Gujarat road tax can be paid at any district of RTO by submitting the required forms along with the other documents.

Haryana Road Tax

Haryana is a state in the north of India surrounding Delhi on 3 sides. Taxes here are collected on one-time basis which means you can continue to ply on the roads without having to pay road taxes. You can opt to pay for e-payment or through online payment for road taxes through Transport Department, Haryana website.

Chandigarh Road Tax

Tax in Chandigarh is also calculated on various factors like vehicle, size of the vehicle, cost of it, make and model etc. and tax can be paid through cash or demand draft at the regional transport office.

Himachal Pradesh Road Tax

Taxes in the state of Himachal Pradesh is based on section 39 of the Motor Vehicle Act, 1988. Tax here is levied on two wheeler, four wheeler and on all other vehicles. Here, the tax has to be paid at the regional transport office at the time of registering your vehicle.

Jammu And Kashmir Road Tax

The road tax in Jammu and Kashmir is imposed by state as well as state government. The road tax is based on the provisions of Section 39 of the Motor Vehicle Act, 1988. Taxes are to be paid to the Regional Transport Office when you register your vehicle. Also, the road tax is different for different type of vehicles like cars, two wheelers, vans, trucks etc.

Karnataka Road Tax

The road tax in Karnataka is also calculated in the same way taxes in other states is calculated. Taxes for vehicle will vary according to different type of vehicles. For road tax to be paid at the time of registering, one has to provide documents pertaining to the same. Also, taxes are charged on classic and vintage cars in Karnataka, although the tax is for lifetime and has to be paid only once.

Kerala Road Tax

Kerala is considered as one of the scenic routes to travel in India. It has well connected roads which is spread across the villages, towns etc. The tax here is calculated and paid on one time basis. One will have to approach the RTO for tax payment. Also, road tax is exempted for vehicles operated and owned by physically disabled people.

Madhya Pradesh road tax

The taxes imposed in the state of Madhya Pradesh are subject to the traffic rules, government rules etc. And when you purchase a vehicle, you are bound to pay charges like central excise duty, central sales tax and state VAT. Besides, Section 39 of the Motor Vehicle Act, 1988, is followed by the state of Madhya Pradesh.

Maharashtra Road Tax

The Maharashtra road tax falls under the Motor Vehicles Taxation Act, 1988. And with respect to a new vehicle in Maharashtra, cost will be determined after adding a lifetime road tax on the showroom price. Besides, tax can be paid by visiting the regional transport office. Here, you need to fill up certain forms and pay the necessary amount as road tax.

Manipur Road Tax

Manipur is one of the finest looking state located in the northeast region of India. Just like most of the states in the country, cost of a new vehicle in Manipur is determined after adding a lifetime road tax on the showroom price. The road tax here is to be paid at the RTO, where you receive an acknowledgement for the same.

Meghalaya Road Tax

Meghalaya is known for all its scenic spots and is located in the northeast region of India. Shillong being the capital of the state, it has good roadway system that serve for transport routes as well as connecting various tourist spots. The road tax structure in Meghalaya falls under the state’s Motor Vehicles Taxation Act, 1998.

Mizoram Road Tax

Since Mizoram falls under the northeast region of India, it comes across as one of the most beautiful states in India. Road tax in Mizoram depends on factors like fuel type, engine capacity, place of manufacture, age of the vehicle, etc. Also, owners who wish to pay the road tax can do so by visiting the RTO, where they will be provided with an acknowledgement for the same.

Odisha Road tax

The road tax needs to be paid in advance at the concerned regional transport office (RTO) or the RTO for the Home State Vehicles where payments can be made through cash or draft. Payment can also be made on the Odisha Motor Vehicle Department website.

Punjab Road Tax

Road tax in Punjab is calculated as per the provisions of the Motor Vehicles Act, 1988. The vehicle owners here can make the tax payment though Punjab Transport Org website. The users will receive the user ID and password and will need to make payment through State Bank of India account.

Rajasthan Road Tax

The Road tax in Rajasthan is calculated as per the provision of the Rajasthan Motor Vehicles Taxation Act, 1951. Payment towards road tax can be made on the website of the Rajasthan transport department.

Tamil Nadu Road Tax

The Tamil Nadu road tax is laid in accordance with the Tamil Nadu Motor Vehicle Taxation act of 1974. Here, the taxes paid are dependent on the type of vehicle.

West Bengal Road Tax

Road tax in West Bengal is based on the provisions under Section 39 of the Motor Vehicle Act, 1988, where this section states the guidelines on how to calculate tax on the vehicles sold or registered in WB. Road taxes in West Bengal (WB) can be paid to the Regional Transport Office when you are registering your vehicle or on the official website of Motor Vehicle Department of West Bengal.

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