In a great relief to the vehicle owners in the State, Gujarat Government on Saturday  decided not to take toll tax from cars and small vehicles.

"Happy to announce that from August 15, cars and small vehicles will be exempted from paying toll tax in Gujarat," Anandiben Patel she tweeted.

In fact Patel herself at a function hinted that surveys were carried out to know the exact amount the State would have to shell out as compensation to toll road operators due the important decision.

The Maharashtra Government had recently shut down around dozen toll plazas and gave more than Rs 800 crore as compensation to the toll road operators. It is worth mentioning that in the 2016-17 State Budget, the Gujarat Government had proposed an increase in taxes to the tune of Rs 195 crores. The State Finance Minister offered tax relief of Rs 251 crores, taking the overall estimated surplus to Rs 189 crores for the fiscal.

“The State would bear the entire cost due to exemption for small vehicle owners. The commercial and heavier vehicles would, however, continue to pay the usual toll tax.

The decision on taxis would be taken later,” said an official. As national highways out of the purview of the State Government, clarity with regards to the decision being effective for the toll booths on national highways could not be ascertained. In the past, Gujarat Government had mulled removing toll tax on all national and State highways, bypass roads and bridges in the State. It had instead mulled replacing toll tax with ‘betterment charge’ and ‘betterment tax’, which could be a one-time levy on those setting up commercial establishments along highways and form those already operating existing roadside business.