I used to work in this field so I can give a basic idea. The tag is based on RFID technology, so in theory when you drive through the gate, the RFID is triggered to pulse its information to the gantry. This is the easy solution for e-tolling.
You will see that there are the black lights and cameras posted next to each other. The white area of a car's number plate is designed/painted to reflect black light which are then picked up by the cameras as a black and white image. You will also see that there are paint markings on the road under the gantry that are used as trigger points. The trigger points initiate the taking of pictures as well as determining the class of vehicle currently passing the gantry. They then have a server/s that process the images to retrieve the number plate, length of vehicle. They also take a picture of the vehicle as part of the record in case of a dispute from clients. The problem with number plate recognition is the fact that typical accuracy is 94% (to reach 98% accuracy starts costing so much its not feasible), which leaves a massive margin of undetectable plates. So if a plate can't be recognised automatically, they have to manually annotate the "toll" which will be at cost to them. I don't know what camera's they are using but we used to use ARHungary's product (currently running at ACSA aiports when you go into the parking area where you pull your ticket) which is incredibly fast, very accurate, but very very expensive. The one used for e-toll look like a cheaper solution. So SANRAL want you to use tags, because it makes they life very very easy in terms of maintenance and effort.
I hope someone finds this interesting.