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</p><p>&nbsp; Residents of Gujarat have an exciting news especially for frequent travelers as Gujarat Chief Minister Anandiben Patel on Saturday exempted car and small vehicles from paying toll tax from August 15. The chief minister announced the decision via her Tweet saying, "Happy to announce that from August 15, cars and small vehicles will be exempted from paying toll tax in Gujarat." Later while addressing a plantation drive in Nanapondha village, Valsad district, she said, "When our brothers, sisters from the middle class go out in their cars for work, they have to shell out Rs 100-150 at toll booths. We have decided to exempt them from paying toll tax…bigger vehicles will still have to pay it."</p><p>&nbsp; It has been quite some time that political parties and other organisations in the state has been demanding to scarp the toll tax. That said government is planning to implement "Betterment Tax" to compensate the losses incurred due to lift of toll taxes which is assumed to cost state government around Rs 250 crore annually including all state and national highways across the state. The 'Betterment charge' and a 'Betterment tax' is expected to grab a much higher revenue than what was generated through the present toll tax regime. The 'Betterment charge' will be a one-time tax on those setting up resorts, restaurants, hotels, motels or shops parallel to the highways. To put it simply, 'Betterment tax' would be charged from existing roadside businesses. Charges to be paid will vary as per the area and has to be paid at time of asking for permission to acquire the land. Tax will be an annual fee which would help develop service lanes and approach roads to the highways. The government is also thinking to have 'annuity agreement' with a contractor which is that once a road is built, the government will pay a fixed sum from the 'betterment charge and tax' to the contractor annually.</p><p></p>