IHC Suspends NHA Notification on 50% Additional Motorway Toll Tax

The Islamabad High Court (IHC) has issued an interim order suspending the operation of a National Highway Authority (NHA) notification that authorized the collection of an additional 50% toll tax from motorists. The heavy surcharge primarily targeted vehicles operating without an active M-Tag or those traveling with an insufficient account balance. By blocking the enforcement, the high court has temporarily restrained the NHA from penalizing commuters across the country’s motorway network while legal scrutiny continues.

The judicial intervention was passed by a single bench comprising Justice Arbab Muhammad Tahir following a preliminary hearing on a petition filed by Advocate Muhammad Jalal Haider. The petitioner legally challenged the statutory backing of the NHA’s May 30, 2025 notification, which had established the extra fiscal levy under the guise of driving total M-Tag compliance. The high court formalised the suspension until the next scheduled hearing on August 3, 2026, while concurrently issuing formal notices to the Ministry of Communications, the NHA, and the federal government to submit detailed para-wise responses within a fortnight.

During the court proceedings, the petitioner’s counsel argued that Section 10 of the National Highway Authority Act, 1991 strictly limits the authority’s mandate to the collection of standard toll taxes for road maintenance and operations. The legal team maintained that the parent legislation contains no specific provision empowering the NHA to impose monetary penalties, administrative surcharges, or extra financial liabilities on commuters for low balances or tag absences. The petition contends that the executive notification represents an overreach of statutory limits and violates constitutional protections regarding property and trade rights, prompting the demand for a full refund of all additional funds collected under the disputed surcharge.