Toll tax collection: The Centre government made FASTtag mandatory for toll tax collection in 2019. The main objectives behind the regularisation of FASTtag was to avoid long traffic jams at toll booths and preventing leakage in toll collection as well. The toll amount is automatically deducted from e-wallets when using FASTag. People can credit money into their FASTag accounts, which are automatically deducted at toll booths. Now, the Central Government is considering implementing a new toll tax collection regime that would eliminate both toll booths and FASTags.
The main idea behind this new regime is that, despite the FASTags, toll booth traffic still exists. One reason for this is that not everyone has signed up for Fastags and still pays in cash.
The Centre is considering implementing a camera-based toll collection system in which tolls are deducted directly from a person’s bank account.
These Cam-based toll collection centers will be able to scan people’s license plates and link them to their bank accounts.
Tolls can be collected using this method without the need for manual intervention.
License plate numbers must be replaced with specially designed plates for this system to function.
These cameras will be known as automatic licence plate readers.
People will not be required to deposit money into their Fastag accounts once these toll cameras are installed.
A person would only require two items: money in their bank accounts and new car plates.
It is unclear when the new regime will go into effect.
However, Toll collections via FASTags increased by nearly 67% year on year to Rs 38,084 crore in FY22, continuing the recent trend of robust growth in such receipts.
A total of 49.5 million FASTags were issued as of the end of March 2021. In March 2020, the figure was 31.2 million.
According to official data, 270.41 million FASTag transactions were recorded in March, an increase of 11% over February of this year.
