(Note: This article was originally published on Vikatan Plus.)
New ₹3,000 Scheme Sparks Debate Across India
Even as petrol and diesel prices rise, the number of people buying private vehicles in India continues to grow. Vehicle owners already pay GST, road tax, and income tax, yet they also face toll charges on highways.
To reduce long queues at toll plazas, the Fastag system was made mandatory a few years ago. But those who choose to pay by cash must now pay double the regular fare.
On August 15, 2025, the central government introduced a new option – a Fastag Annual Pass priced at ₹3,000. Applicable only to private cars, jeeps, and vans (non-commercial), it promises unlimited toll use for a year at central government toll plazas.
The response was immediate: on Day 1, about 1.5 lakh people applied, generating nearly ₹45 crore in revenue. With 7 crore four-wheelers across the country, estimates suggest the government could collect up to ₹21,000 crore annually if adoption is widespread.
But is this scheme truly designed for the people – or is it another revenue windfall for the government?
Yuvaraj, president of the Tamil Nadu Sand Lorry Owners Association, is skeptical:
“Private vehicles rarely cross more than 100 toll plazas a year. Paying ₹3,000 may benefit only a handful of frequent travelers. For others, it’s a loss, and the government pockets the surplus. Toll booths themselves are outdated, and basic services like toilets, ambulances, and service roads are missing. Yet toll charges rise every year. The government must focus on people, not just revenue.”
Similarly, Anbazhagan, president of the Omni Bus Owners Association, added:
“Ideally, India should not have toll roads at all since we already pay road tax. The new pass is useful only for frequent highway users and is valid only at central toll plazas. State tolls must still be paid separately, which limits its value. If fewer people take it, the government gains the most.”
Consider the 456 km stretch between Chennai and Madurai with eight toll plazas.
One-way trip: ~₹745
Round trip: ~₹1,105
Three round trips: ~₹3,315
Here, a driver would already spend more than the ₹3,000 annual pass within just three trips. With regular travel, savings multiply.
But for someone who drives long distances only during festivals like Diwali or Pongal, the pass offers little benefit.
Frequent Travelers: Huge savings (especially those who cross multiple tolls weekly).
Occasional Users: Not worth the ₹3,000 investment.
Government: Guaranteed upfront revenue, regardless of how much users actually travel.
Transport experts also point out that the scheme should have first been extended to commercial vehicles, which cross hundreds of tolls annually, rather than private cars.
India’s toll revenue has jumped from ₹12,000 crore a year to ₹50,000 crore, with projections to cross ₹1 lakh crore soon. The new Fastag annual pass looks like another step in this expansion.
While it does offer genuine benefits for frequent travelers, critics argue it mainly secures steady revenue for the government without addressing fundamental concerns:
outdated toll infrastructure,
lack of basic amenities, and
the fairness of collecting toll despite multiple other taxes.
The ₹3,000 Fastag annual pass can be a smart choice for those who travel highways often. But for occasional users, it’s more of a government jackpot than a real saving.
Until the government improves toll facilities and rationalizes charges, this scheme will remain a mixed bag – a benefit for a few, but a burden for many.