The government is preparing to resume the collection of road usage fees (tolls) on major highways after a six-year gap caused by the COVID-19 pandemic and ongoing road expansion works. Road Board Nepal is set to restart toll collection on 15 national highway sections listed in a Nepal Gazette notice published in April 2019. In addition, the board has proposed seven more sections for toll collection and submitted the list to the Ministry of Physical Infrastructure and Transport for approval.

“Toll collection had stopped after the onset of COVID-19 and the subsequent halt in highway expansion projects,” said Ganesh Bahadur KC, Executive Director of Road Board Nepal. “We are now moving forward with preparations to resume toll collection, beginning from the Bhairahawa–Bhumahi section.” According to KC, discussions have already taken place with the Chief District Officer of Kapilvastu and the local government to facilitate this process.

KC also said that the toll collection system is being modernized. “In the past, tolls were collected by contractors,” he explained. “We are now switching to electronic toll gates, similar to those used in India. Vehicles won’t need to stop for more than 30 to 50 seconds, and scanning technology along with mobile banking will be used to collect the fees.” The board has begun preparations to install this system on the Bhairahawa–Bhumahi section, and a detailed study is underway to extend the technology to other road sections.

In a shift from past practice, two-thirds of the toll revenue will now be dedicated to maintaining the roads from which it is collected. KC emphasized that this revenue cannot be diverted for other purposes. Previously, tolls were mostly limited to roads east of Butwal, including the Naubise–Muglin section of the Prithvi Highway, and the Hetauda–Narayangadh and Narayangadh–Butwal sections of the East-West Highway, as well as the Bhairahawa–Bhumahi section. A Nepal Gazette notice issued on April 15, 2019, expanded the number of toll-eligible roads to 14, while another notice on August 24, 2020, authorized tolls on the Narayangadh–Muglin section.

On this 36-kilometer stretch, tolls had been set at Rs 55 for heavy vehicles such as buses, minibuses, trucks, minitrucks, and heavy machinery, and Rs 25 for small and light vehicles. Now, the Ministry of Physical Infrastructure and Transport has proposed adding several more road sections for toll collection. These include the Muglin–Pokhara, Butwal–Lamahi, Lamahi–Kohalpur, Kohalpur–Attariya, Attariya–Gaddachauki, Dhulikhel–Tatopani, and the Kathmandu–Terai Expressway.

KC added that tolls will be charged in accordance with rates prescribed in the Nepal Gazette. However, certain minimum criteria must be met before fees can be imposed: the road section must be at least 50 kilometers long and must carry at least 900 vehicles per day.

Following the implementation of federalism and the establishment of a three-tier government structure, Road Board Nepal now collects tolls only on national highways. Provinces and local governments are responsible for collecting usage fees on roads within their respective jurisdictions.