Why do we pay toll tax when we already pay road tax?

When you have paid road tax to use and maintain existing roads, the govt has no right to allow the same road to be just redone and charge toll since we have technically already paid to use the existing road and for its upkeep. Toll tax charged by private companies is actually not a tax its a user fee.

Why do we need to pay toll?

Road Tax, in turn, helps to ensure that the cost of road safety and security is maintained. Thus, the most common road tax that is collected from vehicles, is the toll tax. Note: The Road Tax is calculated based on factors like engine capacity, seating capacity, unladen weight and cost price.

Why do we pay road tax in India?

For the purpose of the construction and maintenance of these roads, and for providing various safety and emergency related services along these roads, the state government of every state levies a Road Tax or a Motor Vehicles Tax on the purchase of every vehicle – commercial or personal in the country.

Is a toll fee a tax?

In sum, fees paid by the public to tollway operators for use of the tollways, are not taxes in any sense. A tax is imposed under the taxing power of the government principally for the purpose of raising revenues to fund public expenditures.

Is toll tax a direct tax or indirect tax?

Toll tax is a direct Tax as the burden of taxation is directly on the person who is paying the toll and is not shifted to anybody else.

What is the purpose of road tax?

Vehicle excise duty (VED), typically referred to as road tax, vehicle tax or a road fund licence, is a fee that must be paid to the government if you wish to drive your vehicle. VED helps to cover the cost of essential repairs to the roads and other safety measures that may be required.

Is toll tax applicable on two wheeler?

According to government policy, vehicle less than 1 PCU (Passenger Car Unit) are exempted for paying toll taxes. Bikes or two wheelers are theoretically equivalent to half of what car is or even less than that. Two wheeler’s size is also the reason why they don’t have to pay tolls.

Why do we pay tolls on roads?

The toll fee is a way of recouping the money spent on road construction and maintenance. It is believed that well-maintained roads can help save fuel and time. Therefore, Toll Tax is considered to be a convenience fee paid by the user.

What is the difference between road tax and toll tax?

Unlike the actual tax, only people who use the toll road have to pay a toll fee, and not everyone. The government of India collects Road Tax when a consumer buys a vehicle (tax amount varies depending on the size of your vehicle). You have to pay the Road Tax prior to driving your vehicle on a public road.

The State government or local body will levy toll tax on roads or bridges as a means of recovering the money spent on building that road or bridge. Toll tax might also be levied to recover the maintenance expenditure of the road or bridge. Road tax is mostly a one time payment.

What will happen if the government does not allow toll-tax?

Toll tax is collected generally on multi-lane highways. These are used by buses/trucks and long distance travels. Not all people use them all the time. Besides that, if government does not allow toll-tax, they will have to increase income tax or collect some other kind of tax. People will have issue with that again. We all know how we hate taxes.

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