Exclusive: Govt plans cashback, other benefits for FASTag users to push digital toll collection

In a bid to increase digital tax collection, the Central Government is mulling to give benefits on payment of toll via FASTag.

FASTag users may get up to 10% cashback on paying toll besides a rebate on food plaza on National Highways and Expressways as the government pushes the digital mode of tax payment. 

Currently, there is around 73% toll collection through FASTag while around 27-28% toll collection is still in cash.

As the Transport Ministry is pushing for 100% toll collection via FASTag, it plans to offer various benefits to users. For now, over 500 toll plazas collect tax via digital media. 

The government has set an ambitious target of reaching Rs 1 lakh crore tax collection target in the next 4-5 years.

It is also being proposed to give benefits on fuel if it is paid for via FASTag in the future. 

FASTag enables automatic deduction of toll charges and lets you pass through the toll plaza without stopping for the cash transaction. It is linked to a prepaid account from which the applicable toll amount is deducted. The tag employs Radio-frequency Identification (RFID) technology and is affixed on the vehicle's windscreen after the tag account is active.

This allows cashless payment of toll, besides hassle-free transaction without long queues on highways.