This paper presents a smart fee collection system incorporating Light Fidelity (Li-Fi), an advanced technology to aid in smart fee collection to make the process simple and smart as compared to traditional fee collection. This system adopts integrating vehicle headlamp as Li-Fi transmitter and the entry gate as receiver at the toll collection points for real-time vehicle detecting and fee processing. Li-Fi provides high-speed connectivity, and secure communication with substantial benefits over traditional fee collection system with RFID and camera-based systems, along with the advantage of low latency and enhanced transaction precision. The system does not necessitate any intrinsic cost, as it functions through the already existent LED availability of Non-dedicated vehicles, therefore reducing operational costs and providing a secured data transfer through line of sight(LoS) channel. The system is being evaluated against various real-world scenarios to ensure its accuracy regarding some crucial parameters such as, data transmission, payment processing, and toll gate activation. The paper echoes Li-Fi technology beacons have been proved an effective and trustworthy approach for next-generation fee collection systems having high protection, less traffic gridlock and developments in high advanced framework.