IHC suspends NHA order imposing extra motorway toll on some motorists

ISLAMABAD: The Islamabad High Court has stopped the National Highway Authority from enforcing an extra 50 per cent toll on motorway users travelling without an M-Tag or with too little balance in their accounts, pending further proceedings in the case.

The interim relief was granted by Justice Arbab Muhammad Tahir while hearing a petition brought by advocate Muhammad Jalal Haider against an NHA notification dated May 30, 2025. The court issued notices to the respondents, including the federation and the NHA, and asked them to submit a report along with para-wise comments within a fortnight.

The court also adjourned the matter until August 3. Until the next hearing, the notification will not remain in force. The order effectively restrains the authority from collecting the additional toll amount from affected motorists.

Petition challenges NHA powers

According to the petition, the NHA introduced the additional charge through its May 30 notification for vehicles using motorways without an M-Tag or with insufficient balance in M-Tag accounts. Counsel for the petitioner argued before the court that Section 10(vii) of the National Highway Authority Act, 1991 permits the authority to levy and collect tolls on national highways, strategic roads and other roads placed under its control, but does not authorise it to impose a penalty, surcharge or other added financial burden.

The petition further argued that the NHA is a statutory body and can only exercise powers specifically granted to it under the law. It maintained that neither the NHA Act nor the rules framed under it treat travel without an M-Tag, or with low balance, as an offence carrying a monetary penalty.

The petitioner’s counsel also submitted that the added 50pc amount was effectively a penalty without legal backing and that an executive notification could not create such liability beyond the parent law. The plea said the extra amount had no connection with any service provided by the authority and was therefore beyond the scope of powers available under the NHA Act.

In the petition, the court was asked to declare the May 30 notification unconstitutional, illegal and without legal effect. It also sought a direction for the NHA to return the additional sums already collected under the notification and to place on record the full mechanism related to M-Tag balance management and its utilisation.

Earlier toll increase had been withdrawn

The latest court order comes after the government had already stepped back from another toll-related increase earlier this year. Months ago, a planned quarterly rise in toll plaza charges was suspended on the directions of Prime Minister Shehbaz Sharif, with the move described as relief for the public in difficult economic conditions.

In April, Federal Minister for Communications Abdul Aleem Khan instructed the NHA to withdraw a notification issued on April 1 and stop an increase that was due to take effect from April 5. A subsequent notification was then issued formally cancelling that earlier decision.