PESHAWAR: Peshawar High Court on Tuesday temporarily stopped National Highway Authority (NHA) from imposition of fine on vehicles without M-Tag on Peshawar-Islamabad Motorway (M-I) and directed it to submit its toll tax policy on major highways.

A bench consisting of Justice Mohammad Naeem Anwar and Justice Kamran Hayat Miankhel fixed Dec 10 for next hearing of three almost identical petitions against increase in toll tax on M-I Motorway and imposition of fine on vehicle without M-Tag by NHA.

One of the three petitions was filed by seven lawyers hailing from Charsadda including Asif Ali Shah and others, whereas the two others were filed by some citizens. The petitioners have requested the court to declare as illegal multiple increases in toll tax on the said motorway last year.

They also requested the court to declare as illegal a notification issued by the government on Jan 31, 2025, imposing fine on vehicles without M-Tag or having M-Tag with low balance.

Directs NHA to submit its policy on toll tax

They sought direction of the court for government not to increase toll tax in future without a transparent process, without public consultation and in accordance with law.

Respondents in the pleas are National Highway Authority chairman and secretaries of communication and law and justice ministries.

Advocates Akber Ali, Saeed Akhundzada, Marjan Ali and Syed Bilal Bacha appeared for the petitioners, stating that the number of aggrieved persons of increase in toll tax was much higher, therefore, they might be treated in representative capacity of residents of Charsadda district.

They claimed that last year toll tax on motorway was increased multiple times. They pointed out that in 2024 toll tax from Peshawar to Charsadda and vice versa was first increased from Rs30 to Rs40 and again from Rs40 to Rs60 for motorcars and other vehicles.

They stated that not only the inhabitant of Charsadda district but other people of the province were affected by the said increases, which were not supported by a transparent public consultation process nor justified by any improvement in road infrastructure services.

In the meantime, they said, government issued the impugned notification on Jan 31, through which respondents wanted to enforce 100 per cent M-Tag regime and imposed extra toll tax on non M-Tag vehicles/low balance M-Tag vehicles.

They stated that presently while toll tax from Peshawar to Charsadda on the motorway was Rs70, the authorities had been charging Rs120 from motorists having no M-Tag facility. They contended that the increase in toll tax was arbitrary, excessive and unjustified.

The director (revenue) of M-I Motorway stated that increase in toll tax was made in 2024 in accordance with prevalent policy.

The petitioners’ lawyers stated that under the policy increase in toll tax had to be made after every three years whereas NHA made the same multiple times in 2024.

They said that according to the policy, no tax had to be imposed on a distance of less than 35 kilometers, but in case of Charsadda, which was 20 kilometers from Peshawar, the authority had been collecting Rs70 toll tax.

They stated that under Section 16 of National Highway Authority Act, 1991, NHA was only authorised to levy toll tax in a reasonable manner and any excessive increase without justification violated principles of fair taxation.

When the bench inquired as to why toll tax had been enhanced multiple times last year, the director stated that previously the tax was increased in 2018 and the same couldn’t be increased in 2021 due to presence of Covid-19 pandemic. He said that one of the reasons for increasing the toll tax was existing inflation.

The petitioners’ counsel stated that as increase in tax was contrary to the existing policy, therefore, it might be suspended till final disposal of those petitions.

The bench decided not to suspend the increase in the toll tax and only suspended imposition of fine on vehicles without M-Tag.

Published in Dawn, December 3rd, 2025