New Toll Tax System to Launch Next Month: Pay Only for Distance Traveled

The frustration of waiting in long lines at toll plazas will soon be a thing of the past as India prepares to implement a revolutionary new toll collection system. Starting May 1, 2025, the Global Navigation Satellite System (GNSS) will begin tracking vehicles on national highways to charge toll fees based on actual distance traveled rather than fixed rates.

"You'll only pay for what you use," explains a Ministry of Road Transport official. The system will initially launch as a pilot project on select highways before expanding nationwide.

The technology works through an On-Board Unit (OBU) installed in vehicles—similar to a GPS tracker—that communicates with satellites to monitor movement. When a vehicle travels on a national highway, the system calculates the exact distance covered and automatically deducts the corresponding toll amount from the user's digital wallet or account. 

Unlike the current FASTag system with its fixed charges regardless of exit points, GNSS will charge drivers precisely for their journey. "The moment your trip ends, the toll gets automatically deducted," the official added. 

The system will support both prepaid and postpaid payment options. While FASTag will be gradually phased out, both systems may operate simultaneously during the initial transition period before GNSS becomes the exclusive toll collection method. Benefits for travelers include:

• No stopping at toll plazas
• Fair charges based on actual distance
• Reduction in traffic congestion
• Elimination of toll booth queues
• Seamless journey experience 

This technological upgrade represents a significant step toward modernizing India's highway infrastructure and improving the overall driving experience for millions of commuters.