New Toll Rules in India: Key Updates on Toll Tax Rules for 2025

India's road infrastructure is expanding at an unprecedented pace, with highways and expressways playing a crucial role in national connectivity. To fund this development and maintain road quality, toll collection systems are regularly updated. Recently, new toll rules have been introduced, including increased toll charges, revised FASTag new rules, and proposed policy changes aimed at making toll collection more efficient and user-friendly.

Starting April 1, 2025, toll charges on national highways and expressways have been increased by 4% to 5%. Additionally, new FASTag new rules, implemented in February 2025, impose stricter rules on transactions and blacklisting. Moreover, a new toll policy is in the works to balance infrastructure funding with user affordability. This blog post explores these changes in detail, their impact on commuters, and what road users need to know to navigate India's evolving toll tax rules smoothly.

Toll Tax Rules: Toll Fee Increases Effective April 1, 2025

Every year, the National Highways Authority of India (NHAI) revises toll charges based on wholesale price index (WPI) inflation, with the updated charges coming into effect on April 1. In 2025, toll charges have increased by 4% to 5%, affecting several major highways and expressways across the country.

Key Routes Affected by the Toll Fee Hike:

• Delhi-Meerut Expressway: The one-way toll fee for cars and jeeps traveling between Sarai Kale Khan and Meerut has increased from INR 165 to INR 170. Light commercial vehicles and buses now pay INR 275, while trucks are charged INR 580 per trip.

• NH-9 (Chhijarsi Toll Gate): Toll charges for cars have risen from INR 170 to INR 175. Light commercial vehicles now pay INR 280, and buses and trucks are charged INR 590.

• Lucknow Highways: On key routes like Lucknow-Kanpur, Ayodhya, Raebareli, and Barabanki, car toll fees have increased by INR 5 to INR 10 per trip, while heavy vehicles face a hike of INR 20 to INR 25.

This marks the second toll fee increase within a year, following a mid-year hike in June 2024. The NHAI justifies these increases as necessary for financing ongoing infrastructure projects and maintaining road quality.

FASTag New Rules Implemented in February 2025

To enhance the efficiency of electronic toll collection and reduce fraud, the National Payments Corporation of India (NPCI) introduced stricter FASTag new rules in February 2025. FASTag is now mandatory for all four-wheelers and commercial vehicles, streamlining toll fee payments across national and state highways.

Key Changes in FASTag New Rules:

1. Blacklisting Penalties: FASTags with insufficient balance will be blacklisted. If a FASTag is blacklisted more than 60 minutes before toll gate entry or 10 minutes after scanning, the vehicle may be required to pay double the toll fee.

2. 70-Minute Grace Period for Recharges: Users have a 70-minute window to recharge their FASTag accounts—starting 60 minutes before toll gate access and extending to 10 minutes after scanning—to avoid penalties.

3. Delayed Transaction Charges: Transactions processed more than 15 minutes after passing a toll gate may incur additional fees to reduce processing errors and ensure timely payments.

4. Chargeback Waiting Period: Banks must observe a 15-day waiting period before processing chargeback requests for incorrect deductions related to blacklisted FASTags or low balances.

Recommendations for FASTag Users:

• Maintain Sufficient Balance: Regularly check your FASTag balance to avoid penalties.

• Verify FASTag Status Before Travel: Use your bank’s FASTag portal or mobile app to ensure your FASTag is active.

• Enable Auto-Recharge: This prevents low balance issues and ensures seamless toll fee payments.

• Update KYC Details: Keep your Know Your Customer (KYC) information updated with the issuing bank to avoid deactivation.

These measures aim to enhance toll gate collection efficiency and minimize user inconvenience.

Proposed Toll Policy Reforms

In March 2025, Union Road Transport and Highways Minister Nitin Gadkari announced the development of a new toll policy that aims to provide "reasonable concessions" for highway users. While toll collection remains essential for funding infrastructure development, the government acknowledges the need for a more consumer-friendly system. The specifics of the new policy are yet to be disclosed, but it is expected to introduce reforms that balance affordability with the necessity of toll revenue.

Implications for Commuters and the Transportation Sector

The recent changes in toll tax rules have several implications for commuters and businesses:

• Increased Travel Costs: The toll fee hikes result in higher expenses for daily commuters, logistics providers, and transport businesses, potentially leading to increased costs of goods and services.

• Improved Efficiency: The new FASTag new rules aim to enhance the electronic toll collection system, reducing fraud and minimizing delays at toll gates.

• Need for Awareness: Staying informed about toll tax rules is crucial to avoid penalties and ensure seamless travel experiences.

Conclusion

India's toll system is evolving to accommodate the country's expanding road infrastructure while ensuring efficient toll gate collection. With toll fee hikes, stricter FASTag new rules, and upcoming policy reforms, commuters need to stay updated to navigate the changes effectively. While these updates may increase travel costs, they also contribute to better road maintenance and infrastructure development.

By adopting best practices such as maintaining adequate FASTag balance, staying informed about toll tax rules, and leveraging auto-recharge options, road users can ensure hassle-free travel. As the government works on a more balanced toll policy, future developments may offer greater relief to commuters while sustaining India's rapid infrastructure growth.

Keeping an eye on these changes will help travelers and transport operators plan their journeys better, ensuring smoother and more cost-effective road travel across the country.

FAQS

What are the latest toll tax rules in India?

The latest toll tax rules include a 4-5% increase in toll charges from April 1, 2025, affecting major highways and expressways across the country.

How much has the toll fee increased on national highways?

The toll fee has increased by INR 5 to INR 10 for cars and INR 20 to INR 25 for heavy vehicles on key routes such as Delhi-Meerut Expressway and NH-9.

What changes have been made to FASTag new rules in 2025?

The FASTag new rules introduce penalties for insufficient balances, a 70-minute recharge grace period, and additional fees for delayed transactions at toll gates.

What happens if my FASTag is blacklisted under the new rules?

Under the updated FASTag new rules, blacklisted FASTags will require vehicles to pay double the toll charges, and banks must observe a 15-day chargeback waiting period for incorrect deductions.

How can I avoid penalties at the toll gate under the new FASTag rules?

To avoid penalties at the toll gate, ensure your FASTag has a sufficient balance, enable auto-recharge, and update your KYC details with the issuing bank.

Will the new toll tax rules impact daily commuters?

Yes, the revised toll tax rules mean higher toll charges for daily commuters, particularly those traveling on expressways and national highways.

Are there any exemptions under the revised toll tax rules?

Certain emergency vehicles, government vehicles, and VIPs may be exempt from toll charges, depending on location-specific policies.

What should I do if my toll fee is deducted incorrectly?

If your toll fee is deducted incorrectly, you can file a dispute with your FASTag-issuing bank. However, under the new FASTag new rules, banks must wait 15 days before processing refunds.

Will future toll tax rules include discounts for frequent travelers?

The government is considering reforms in toll tax rules that may offer discounts for frequent travelers, but no official announcement has been made yet.

How will the new toll policies affect commercial vehicles?

Commercial vehicles will face increased toll charges, but the improved FASTag system will help reduce waiting times at toll gates, improving efficiency.