Toll Tax Relief: Centre announces 50% cut in toll charges
Babushahi Bureau
New Delhi, July 5, 2025 – In a significant move to ease travel expenses for commuters, the Government of India has announced a 50% reduction in toll charges on sections of National Highways featuring major structures such as bridges, tunnels, flyovers, and elevated roads.
The decision, aimed at providing financial relief to drivers, was officially notified by the Ministry of Road Transport and Highways on July 2, 2025, along with a major amendment to the National Highway Fee Rules, 2008.
How Will the New Toll Calculation Work?
Under the revised rules, the toll fee for structured segments of highways will now be calculated using two new formulas, and the lower of the two outcomes will be applied:
- The length of the structure (bridge, tunnel, etc.) will be multiplied by 10 and added to the rest of the highway length.
- The total length of the highway will be multiplied by 5.
Whichever formula results in a shorter effective distance will be used for toll calculation, effectively reducing the toll burden by up to 50% on such routes.
Example of the New System
For instance, if a 40 km stretch of a highway is completely made up of a structure, earlier the toll would be calculated as 10 times the length, i.e., 400 km.Now, using the new formula (5 times the length), it will be treated as 200 km, resulting in half the toll amount compared to the previous system.
Why Were the Rules Changed?
Earlier rules allowed a higher toll—10 times the structure’s length—to help recover the construction cost of infrastructure projects.However, with the rising burden on commuters, the government has now revised the toll structure to ensure affordable travel while maintaining project viability.
What Will the New System Achieve?
The government aims to bring transparency and consistency in toll charges through this reform.It will also reduce toll expenses for drivers using structure-heavy routes, such as expressways and urban flyovers.
Moreover, the move will enable the National Highways Authority of India (NHAI) to continue operations in the public interest while maintaining financial sustainability.