IHC restrains NHA from collecting 50pc additional toll on M-Tag violations

The Islamabad High Court (IHC) on Friday restrained the National Highway Authority (NHA) from collecting an additional 50% from motorists travelling without an M-Tag or with insufficient M-Tag balance, suspending the authority’s notification until the next hearing on August 3.

The court also issued notices to the NHA, the Ministry of Communications and other respondents, seeking their replies.

Justice Arbab Muhammad Tahir passed the interim order after conducting a preliminary hearing on a petition filed by Advocate Muhammad Jalal Haider.

Read: SCBAP to challenge NHA’s ‘extortion’ via toll tax hikes

The NHA had announced a 50% increase in toll charges for vehicles without an M-Tag or with insufficient M-Tag balance, effective from June 15, 2025, as part of its plan to implement a 100pc M-Tag system across the country’s motorways.

The petition named the NHA, the Ministry of Communications and other parties as respondents, requesting the court to declare the additional charge illegal and order the authorities to refund the amount collected from the public under the penalty.

According to the petition, the NHA issued a notification on May 30, 2025, imposing an additional 50% toll, described as a penalty, on vehicles travelling without an M-Tag or with insufficient M-Tag balance.

The petitioner argued that Section 10 of the NHA Act authorised the authority only to collect toll tax and contained no provision allowing it to impose penalties on either non-M-Tag vehicles or those with low M-Tag balances.

The petition contended that the NHA was recovering the additional amount without any legal authority.

It requested the court to declare the May 30 notification unconstitutional and void, direct the NHA to refund all additional amounts collected under the notification, and seek details of the mechanism governing M-Tag balances and its implementation.