NHA Imposes Second Toll Tax Hike in 2025, Drawing Public Criticism

NHA Imposes Second Toll Tax Hike in 2025, Drawing Public Criticism

In a move that has sparked widespread concern among commuters and the business community, the National Highways Authority (NHA) has announced its second toll tax increase of the year, set to take effect on April 1, 2025. This decision marks the fourth toll hike within the past ten months, reflecting a significant shift in the government's approach to infrastructure funding.

Details of the Toll Increase

The revised toll rates will impact various categories of vehicles across national highways and motorways. Key changes include:

• National Highways (e.g., GT Road):

  • Cars: Increase from Rs60 to Rs70.
  • Wagons: Rise from Rs100 to Rs120.
  • Buses: Adjustment from Rs200 to Rs240.
  • Trucks: Hike from Rs250 to Rs300.
  • Articulated Trucks: Increase from Rs500 to Rs600.

• Islamabad-Peshawar Motorway (M1):

  • Cars: Toll raised from Rs500 to Rs550.
  • Wagons: Increase from Rs750 to Rs800.
  • Buses: Adjustment from Rs1,450 to Rs1,600.
  • Trucks: Hike from Rs2,300 to Rs2,500.

• Lahore-Abdul Hakeem Motorway (M3):

  • Cars: Toll increased from Rs700 to Rs750.

• Pindi Bhattian-Faisalabad-Multan Motorway (M4):

  • Cars: Rise from Rs950 to Rs1,000.

• Multan-Sukkur Motorway (M5):

  • Cars: Adjustment from Rs1,100 to Rs1,150.

• Dera Ismail Khan-Hakla Motorway (M14):

  • Cars: Toll set to increase from Rs600 to Rs650.
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Additional increases are also slated for the Kohat Tunnel (N55), Islamabad-Murree-Kohala Highway (N75), and Mianwali Toll Plaza (N135), among others.

Rationale Behind the Hike

According to NHA officials, this series of toll adjustments aims to support the authority's ambitious revenue target of Rs102 billion for the fiscal year 2024-25, a substantial increase from the Rs64 billion collected in the previous fiscal year. The additional funds are earmarked for the maintenance and expansion of the nation's road infrastructure, ensuring safer and more efficient travel for all users.

Public and Business Community Response

The announcement has been met with significant backlash from both daily commuters and the business sector. Frequent travelers, especially those relying on these routes for work, have expressed frustration over the escalating costs associated with their daily commutes. The business community, particularly in regions like Gujranwala and Gujrat, has voiced concerns that the increased transportation costs will lead to higher prices for goods and services, ultimately burdening consumers.

Local business associations and civil society organizations have called upon the government to reconsider the frequent toll hikes, emphasizing the financial strain on an already economically challenged populace. They argue that such increases should be more gradual and consider the broader economic impact on both individuals and businesses.

Historical Context

This latest increase is part of a pattern of frequent toll adjustments by the NHA. In January 2025, the authority implemented its third toll hike within seven months, nearly doubling the rates during that period. For instance, car tolls on the GT Road rose from Rs30 to Rs60 between June 2024 and January 2025. The NHA has indicated that toll rates will now be reviewed and potentially revised every three months, a departure from the previous practice of infrequent adjustments.

Looking Ahead

As the April 1 implementation date approaches, stakeholders across various sectors are closely monitoring the situation. While the NHA maintains that the increased revenue is crucial for infrastructure development, the widespread public dissent suggests a need for a more balanced approach that considers the economic realities faced by Pakistani citizens.

The government may need to engage in dialogue with affected parties to explore alternative funding mechanisms or provide relief measures to mitigate the impact of these toll hikes on everyday life.