Gujarat will soon exempt LMVs from paying toll tax

Nikhil Puthran

Gujarat CM Anandiben Patel has announced that private cars and three-wheelers will be exempted from paying toll tax on state and national highways from August 15. However, toll taxes will be collected from taxis and other commercial vehicles.

The state will bear the revenue loss at the toll booths to facilitate commuters. As the toll booths on the national highways are not under the state’s jurisdiction, the state government will be compensating the contractor of toll booths situated on the national highways. The government initially estimated a revenue loss of about Rs 80 crore - Rs 100 crore. But with plans to include the national highways, the annual revenue loss is expected to be about Rs 250 crore.

In view of the 2017 assembly elections, the announcement to exempt toll was made at the inauguration event of the Amra Van Mohatsav at Balchondi village, in Valsad. However, there is no clarity for now on how the state government plans on compensating for the revenue losses.

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