Highway Law Overhaul Proposal: Post-Expiry Toll Collection Under Government Control With Reduced Rates

Deep News
09/08

On September 7, 2026, the Ministry of Transport unveiled a draft amendment to the Highway Law of the People's Republic of China for public consultation, with feedback accepted until October 7, 2026. The proposed revision addresses critical gaps in how expressway maintenance will be funded once current toll collection periods expire, establishing a unified government management framework that allows continued toll collection at significantly reduced rates.

According to the draft, once the debt repayment or operational periods for expressways, independent bridges, and tunnels conclude, these assets will come under unified government administration. Where necessary, toll collection can continue to raise funds for management and maintenance, with fee standards requiring approval from provincial-level people's governments. Facilities incorporated into municipal maintenance systems or those with sufficient fiscal guarantees will no longer charge tolls. Officials emphasized that any tolls collected for maintenance purposes after the expiration period will be considerably lower than current rates.

The revision also modernizes financing language by replacing "using loans or fundraising" with "lawfully incurring debt," aligning with the 2014 Budget Law that restricts government borrowing to local government bonds issued within State Council limits. This adjustment reflects current fiscal and tax reform requirements.

For the first time, authorities have disclosed the funding structure for toll roads, noting that construction capital comes primarily from debt financing, social investment, and special highway construction funds. During toll periods, revenue collected under the user-pays principle is prioritized for debt principal and interest repayment, with remaining funds allocated to routine maintenance, major repairs, operational management, emergency response, and investment recovery. Notably, no clear institutional framework has previously existed for post-expiry maintenance funding.

Officials have officially defined the user-pays principle as "more users pay more, fewer users pay less, and non-users pay nothing." This approach, applied after toll periods expire, charges actual beneficiaries while embodying the fairness of "those who benefit bear the burden," avoiding placing additional strain on the general public while ensuring safe, efficient, and high-quality transportation services.

The draft reveals a significant fuel tax shortfall, with officials quantifying that proceeds from the refined oil product consumption tax replacing road maintenance fees can only satisfy approximately half of the funding needed for ordinary road upkeep. If expressway maintenance after toll expiration were instead funded by raising this tax, fuel prices would rise substantially, creating unfair tax burdens for vehicle owners who rarely or never use expressways.

Approval authority for toll standards will be elevated, shifting from provincial transportation departments coordinating with price authorities to direct approval by provincial-level people's governments. This upgrade strengthens government responsibility and management oversight for what qualifies as a major administrative approval matter affecting public interests.

Furthermore, the permitted uses for toll revenue will expand beyond routine maintenance, major repairs, operational management, and emergency response to include expressway renovation and digital-intelligent upgrades. The Ministry of Transport also signaled that supplementary policy documents will follow to strengthen toll revenue and expenditure management, enhance audit supervision, and ensure transparent use of funds.

Statistical data shows that by the end of 2025, China's total road mileage reached 5.579 million kilometers, 4.4 times the 1998 figure. Expressway mileage reached 199,000 kilometers, 22.8 times the 1998 level and consistently ranking first worldwide. Roads carry 73% of national freight volume and 67% of passenger volume, with expressways accounting for 3.6% of road mileage but handling over 50% of road network freight turnover.

The drafting process involved a dedicated working group established with the National Development and Reform Commission, the Ministry of Finance, and other departments. The group conducted comprehensive surveys of expressway maintenance funding needs, organized research delegations to gather local government and stakeholder input, systematically studied international highway development models, commissioned dozens of research projects through national think tanks and universities, and conducted multiple rounds of consultation with relevant ministries, provincial governments, industry associations, and enterprises.

Since the Highway Law first took effect in 1998 as China's first fundamental legislation systematically regulating highway planning, construction, maintenance, operation, use, and management, it has undergone five amendments in 1999, 2004, 2009, 2016, and 2017. This latest proposed revision adopts a patchwork, small-scale approach that preserves the existing institutional framework while providing legal space for diversifying road maintenance funding channels.

Officials confirmed that all public suggestions will be collected, categorized, and carefully considered. Recommendations demonstrating scientific validity, rationality, and feasibility will be fully incorporated. For those that cannot be adopted, alternative consideration will be given, ensuring every submission receives proper respect. A dedicated team will manage daily collection and organization of feedback submitted through the ministry's website, email, or postal mail.

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