Cars To Be Exempted From Toll Tax In Gujarat From August 15

This Independence Day is about to bring in a sense of freedom for the people of Gujarat as well as those who frequently travel to and from the state. The state's Chief Minister, Anandiben Patel, has recently announced that cars and small vehicles, including three-wheelers, will no longer have to pay toll tax in the state from August 15 and we spell it out as freedom from paying toll. The announcement came earlier this weekend, through the Chief Minister's official twitter handle saying, "Happy to announce that from August 15, cars and small vehicles will be exempted from paying toll tax in Gujarat." The tax exemption will be applicable to all toll booths in the state, including those on national highways.

Happy to announce that from 15th August ,cars and small vehicles will be exempt from paying toll tax in Gujarat .

— Anandiben Patel (@anandibenpatel) July 30, 2016

This decision by the Ananadiben government comes ahead of the 2017 state assembly elections and is a smart move as it's sure to please an integral number of voters. Considering Gujarat has been a major industrial hub, hundreds of cars and small vehicles have to use these toll booths on a daily basis for business and official purposes, and an exemption on toll tax makes a lot of difference. In fact, several organisations and political parties in the state have been demanding scrapping of toll tax. That said, the exemption of toll tax is only on private vehicles, which means commercial tourist cabs, private buses, taxis and other commercial vehicles, both small and large will have to pay taxes as usual.

"When our brothers, sisters from the middle class go out in their cars for work, they have to shell out Rs 100-150 at toll booths. We have decided to exempt them from paying toll tax...bigger vehicles will still have to pay it," Anandiben said while addressing a plantation drive in Nanapondha village of Valsad district.

Currently, there are around 50 toll booths in Gujarat and the revenue loss at these toll booths will be borne by the state in order to facilitate the commuters. Reports indicate that the initial estimate of loss in revenue was between Rs. 80 crore and Rs. 100 crore, but the decision to include national highways in the scheme will increase losses to Rs. 250 crore per annum.