The government of Himachal Pradesh is going to launch a FASTag-based entry tax collection system for all 55 toll plazas in phases. The purpose of this drive is to bring efficiency in paying taxes and a drastic cut in waiting time for vehicles entering the state.
During the first phase, the system will be put in place in six key spots:
- Garamaura in Bilaspur
- Parwanoo (Main)
- Tipra Bypass (Parwanoo) in Solan district
- Govindghat in Sirmaur district
- Kandwal in Kangra
- Mehatpur in Una district
- Baddi in Solan district.
The spots have been chosen for the first phase in order to experiment with the efficacy of the system before taking it to other barriers.
Government’s Plan to Increase Revenue by 7.5% with FASTag Toll System
A government spokesperson announced that for the financial year 2025-26, all entry tax barriers will be allocated through an auction-cum-tender process. This move is expected to boost revenue collection by approximately 7.5% compared to the financial year 2024-25. The transition to FASTag is anticipated to make toll collection more seamless, ensuring both compliance and convenience for commuters.
Auction-Cum-Tender Process to Allocate Toll Barriers for FASTag System in 2025-26
As a requirement for the tender, the winners of the bid for the designated toll units shall put in place the FASTag-based entry tax regime within 45 days from obtaining their lease. In default thereof, the lease agreement of such winners will be cancelled.
The lessees shall bear all costs related to the installation and use of the system, including the fees of the Issuer Bank, the National Payments Corporation of India (NPCI), the Indian Highways Management Company Ltd (IHMCL), and the acquiring bank. Top government officials have been directed to ensure the timely implementation of this initiative in their jurisdictions to avoid delays.
This Implementation is set to Boost Efficiency and Cut Waiting Times at Toll Barriers
The spokesperson also added that toll lessees will have to give a written assurance assuring that they will implement the FASTag-based tax collection system at their own expense. They will also have to issue receipts to commuters making round trips within 24 hours. For ensuring transparency, they are strictly not allowed to charge any amount above the officially approved toll rates. Any violation of these rules may lead to strict action against the offenders.
Transparency and Compliance: Key Rules for Toll Lessees Under FASTag System
For the sake of smooth functioning and justice, the new system will have a provision that will not allow any deduction for vehicles that are exempt from paying entry tax. Currently, all the vehicles registered in Himachal Pradesh, with the only exception being heavy commercial vehicles, are exempted from this tax. Exempted vehicles will be identified by the FASTag software and they will not be charged inappropriately.
Exempted Vehicles: How FASTag Technology Will Ensure Fair Tax Collection
By implementing FASTag technology for collection of the entry tax, the Himachal Pradesh government hopes to digitise toll management, minimise congestion at the barriers, and enhance the overall travel experience of tourists and commuters. This shift is a major move towards digitalisation and an efficient governance of the transportation sector in the state.
Conclusion:
The introduction of FASTag-based entry tax collection in Himachal Pradesh marks a progressive step towards digital toll management. By leveraging technology, the state aims to enhance convenience, reduce delays, and ensure a seamless tax collection process. This initiative will not only benefit commuters but also contribute to increased revenue and improved governance in the transportation sector. For more information on legal aspects connect with our experts today. Talk to a senior legal expert at Vakilsearch now.
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