Islamabad High Court extends stay on 50% additional toll tax 

The Islamabad High Court (IHC) has extended its earlier interim order preventing the collection of an additional 50 percent toll tax from vehicles that do not have an M-Tag installed. The relief will remain in effect until the next hearing of the case, providing temporary protection to motorists while the legal proceedings continue.

During the hearing, the National Highway Authority (NHA) submitted its written response before the court, outlining its position regarding the policy of imposing an additional toll charge on vehicles that are not registered under the M-Tag system. The response is expected to form the basis of further arguments in the case.

The petitioner’s counsel requested additional time to carefully review the written reply submitted by the NHA before presenting a detailed response. Accepting the request, the court adjourned the proceedings to a later date, allowing both parties sufficient time to prepare their arguments.

While postponing the hearing, the Islamabad High Court announced that its previous order would continue to remain in force until the next hearing. As a result, authorities have been restrained from collecting the additional 50 percent toll tax from vehicles that either do not have an M-Tag installed or have insufficient balance in their M-Tag accounts.

The interim relief means that motorists falling into these categories cannot be charged the extra amount until the court issues further directions. However, the regular toll charges applicable under existing rules may still be collected.

The dispute centers on the National Highway Authority’s policy requiring motorists to register their vehicles with the M-Tag electronic toll collection system. Under the authority’s regulations, vehicles that are not registered with M-Tag are subject to a 50 percent higher toll fee when using motorways and designated highways. Similarly, vehicles with an M-Tag account that does not have sufficient balance may also be charged the additional amount under the same policy.

The NHA introduced the M-Tag system to modernize toll collection, reduce congestion at toll plazas, promote cashless payments, and improve the efficiency of traffic management on Pakistan’s motorway network. The electronic system enables vehicles to pass through toll plazas more quickly, minimizing delays and reducing manual cash transactions.

Despite these objectives, the policy of imposing an additional 50 percent toll charge has faced criticism from some motorists and legal experts. Opponents argue that the surcharge is excessive and places an unnecessary financial burden on drivers, particularly those who have not yet registered for the M-Tag system or encounter technical issues with their accounts. They also contend that such a financial penalty should have a clear legal basis and should not be enforced without proper safeguards.

The NHA’s decision has therefore been challenged before the Islamabad High Court, where the petitioner seeks to have the additional toll charge declared unlawful. The court will examine the legal validity of the policy after considering the arguments of both parties, including the authority’s written response and the petitioner’s objections.

Until the next hearing, the High Court’s interim order will continue to provide temporary relief to affected motorists by preventing the collection of the disputed 50 percent additional toll tax. The outcome of the case is expected to determine whether the National Highway Authority can lawfully enforce the surcharge in the future or whether changes to the policy will be required.