It is necessary to remember that another new rule has been introduced to make the toll payment system more smooth. The government of India has introduced a new rule to promote digital payment system by reducing cash payments at toll plazas. Under the new rule, vehicles entering national highways without a FASTag will be charged different fees based on their payment method.
A new rule related to toll tax
If a user makes a cash payment, they will be charged double the applicable toll tax. However, if the same user makes a payment using UPI or any other digital method, the tax will be 1.25 times. Currently, both cash and UPI payments are taxed twice. This means that non-FASTag users will pay less tax when making payments using UPI. This is a significant discount for vehicles without a FASTag.
Why the rule has been changed?
This change has been made to promote digital payments and reduce cash transactions at toll plazas. This rule will also bring about a major change in the payment methods at toll plazas. This rule will be considered effective from November 15th. It has been notified by the Ministry of Road Transport and Highways under the National Highway Fee Rules, 2025.
Government has amended National Highways Fee (Determination of Rates and Collection) Rules, 2008.
Under the new rule, vehicles entering a fee plaza without a valid, functional #FASTag will be charged twice the applicable user fee, if the fee payment is made in cash. Users, who… pic.twitter.com/pL7igfYvfe
— All India Radio News (@airnewsalerts) October 4, 2025
What is the aim of the move
The move aims to encourage digital transactions, improve transparency and enhance efficiency at toll plazas, thereby reducing vehicular congestion at toll plazas and improving travel time for highway users. The ministry said this amendment reinforces the government’s commitment to leverage technology for smoother, faster and more transparent toll collection on India’s national highway network.
