Fiscal Nepal
First Business News Portal in English from Nepal
Highway toll
KATHMANDU: After nearly six years of suspension, Nepal is set to resume road usage fee collection on national highways, this time through modern electronic toll gates. The Road Board Nepal announced that the system, halted during the COVID-19 pandemic and highway expansion works, will now be reintroduced with digital payment facilities to ensure efficiency and transparency.
According to Ganesh Bahadur KC, Executive Director of the Road Board, the government had initially decided in 2019 (2076 BS) to collect tolls on 15 road sections. Later, seven more sections were identified, and proposals were forwarded to the Ministry for approval. Before the pandemic, tolls were being collected from 7–8 road stretches, but the system was discontinued as restrictions hit mobility and road upgrades began.
Electronic Tolling to Replace Manual Collection
Under the new plan, tolls will be collected using electronic toll gates, minimizing vehicle stoppage time to just 30–50 seconds. Motorists will be able to pay using mobile banking and QR code scanning, reducing cash handling and leakages.
The first rollout will take place on the Bhairahawa–Bhumahi road section, with necessary groundwork already initiated in consultation with Chief District Officers and local governments. The Road Board is also preparing to expand the tolling system from Butwal eastwards to Butwal west and further up to Gaddachauki.
As per law, two-thirds of the collected revenue must be reinvested into the maintenance of the same road sections, ensuring direct utilization of funds for infrastructure upkeep.
Expansion to 22 Key Road Sections
The Road Board has now proposed an additional seven road corridors for tolling, taking the total to 22. Among them are some of the busiest highways in Nepal:
Muglin–Pokhara
Butwal–Lamahi
Lamahi–Kohalpur
Kohalpur–Attariya
Attariya–Gaddachauki
Dhulikhel–Tatopani
Kathmandu–Terai Expressway
Toll Rates by Vehicle Category
Under the revised fee structure:
Heavy vehicles will be charged between Rs 30 and Rs 140.
Light vehicles such as cars and jeeps will pay Rs 15 to Rs 85.
Motorcycles and tempos will be charged Rs 5 to Rs 15.
Officials believe this will not only generate vital funds for road maintenance and upgrades, but also mark a major leap towards digitization and transparency in Nepal’s road transport system.
Long-delayed but Crucial Reform
Experts say the revival of toll collection with electronic systems represents a long-delayed but crucial reform. In the past, manual toll booths faced widespread criticism for inefficiency, corruption, and revenue leakages. The digital system is expected to curb such malpractices, while ensuring that road users directly contribute to the upkeep of highways they use.
If implemented effectively, the system will position Nepal closer to international practices of smart highway management while addressing chronic funding gaps for road repairs and expansion.
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