PHC throws out toll hike challenge

The Peshawar High Court (PHC) on Monday dismissed a set of petitions challenging recent increases in toll taxes on motorways and the Grand Trunk (GT) Road.

A two-member bench comprising Justice Naeem Anwar and Justice Farah Jamshed heard the writ petitions. The petitioners' counsel and officials of the National Highway Authority (NHA), along with their legal representative, appeared before the court.

The petitioners argued that after the construction of motorways, a toll tax policy was introduced in 2010 under which separate toll rates were fixed for the M-1, M-2 and M-3 motorways. Although the policy laid down a specific formula and allowed revisions every three years, the toll tax was increased three times within a single year, they contended.

They further maintained that the NHA had introduced an M-Tag regime without any enabling legislation, relying instead on a notification. The petitioners said the toll tax formula presented by the NHA was unclear, adding that the distance from Rashakai to Charsadda and onward to Peshawar is less than 35 kilometres. Under the policy, toll plazas covering distances below 35 kilometres should attract zero toll, they argued.

Responding to the bench, NHA's counsel stated that different toll rates were being charged for M-Tag and non-M-Tag vehicles. Justice Naeem Anwar questioned the legal basis for such differentiation and asked under which law separate taxes were being imposed.

The NHA counsel replied that a nationwide M-Tag awareness campaign had been launched, including three months of free M-Tag distribution, followed by a notification. As a result, around 70 per cent of vehicles had shifted to the M-Tag system, which, she said, reduced congestion and improved security by enabling vehicle data tracking. Additional charges on non-M-Tag vehicles were imposed to encourage adoption of the system.

The bench repeatedly asked the NHA to clearly explain the toll tax formula. The authority's counsel maintained that there had been no increase in toll taxes from 2018 to 2024 and that the recent hike was made strictly in accordance with the existing formula, without any policy change. She also rejected the distance-based calculations submitted by the petitioners as incorrect.

When asked about the per-kilometre rate, the NHA counsel informed the court that toll tax was being charged at Rs3.42 per kilometre. The petitioners' counsel reiterated that they did not oppose taxation per se but insisted it must strictly follow the approved policy, adding that any change in policy should be formally brought on record.

During the proceedings, the court noted that it had earlier issued a stay order against the imposition of an additional 25 per cent charge on non-M-Tag vehicles and had restrained the NHA from collecting the extra amount. The petitioners alleged that despite the court's orders, the NHA continued to collect additional charges on motorways.