In a move that will come as a huge relief to highway users, the Union government is mulling a mega toll tax reform of making national highways less than four lanes toll-free. Sources pointed out that the move is likely to be announced very soon.

A senior government functionary told Fortune India, “The proposal to make national highways less than four lanes toll-free is under active consideration by the government. The highways ministry has approved that plan and has sent it for further consideration by the ministries of finance and law. Both the ministries are reviewing the proposal by the road transport ministry.”

Without divulging further details, the government source said that people will forget what is “toll tax” once the proposal is officially notified, adding that it is likely to be announced “very soon”.

It may be noted that road transport and highways minister Nitin Gadkari had also earlier announced the provision of annual passes worth ₹3,000 for car owners for unlimited travel on highways. This, in fact, will be on national highway stretches of four lanes and more, and is also being actively considered by the finance ministry and the law ministry.

Ministry sources point out that a detailed exercise has been done on the viability of the proposal for nil toll taxes on two-lane, single lane and two-and-a-half lane highways, and the revenue implication are not too huge. A source points out that a ministry review found out that such roads account for less than half of the toll tax collected on the four-lane highways. Also, at a majority of places, the toll is collected by the government.

This essentially means that a transition to a nil tax regime on highways with less than four lanes does not involve any concession agreement with the private sector. Thus, a transition to nil toll tax regime on these roads is expected to be smooth.