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National Highway & Motorway Toll Tax Update September 2025

National Highway Authority (NHA), in September, announced a significant increase in the rates of toll tax for the traffic plying on the country’s national highways and Motorway Toll Tax Update. It came after the passage of Federal Budget 2025 from the National Assembly, which was meant to increase the availability of financial resources to maintain and develop road infrastructure in Pakistan. The new changes  will come into operation on 1st September, 2025, and are part of a broad approach to the development of quality transport networks in the country.

His revision shows that the government has become more alert to the pressing need for sustainable funding mechanisms that keep the ball rolling for infrastructure projects. With such a wide length of highways and the Motorway Toll Tax Update in the country, the NHA Motorway Toll Tax Update is responsible for keeping these routes—vital arteries for trade and travel—safe and efficient. To ensure compliance, it’s essential to verify vehicle registrations, which can help streamline toll collection. Increased toll rates are likely to bring in handsome revenue that shall be utilized for necessary maintenance, upgrades, and construction of new road segments.

Advantages of the Motorway Toll Tax Update

The recent changes in it imposed on national highways and Motorway Toll Tax Update has its share of benefits that  contribute to infrastructure, economic improvement, and, above all, the transport system within the country. 

  • One of the biggest advantages associated with the rise has something to do with the payment that this agreement brings into the hands of the NHA. This currency the authority needs to finance the repair works, maintenance, and expansion of the road network across the nation. As a result, transportation can become more efficient, traveling time can be reduced, and all categories of road users can be safer.
  • With the additional, NHA will be in a better position to invest in regular maintenance and upgrading of existing highways and Motorway Toll Tax Update. It may result in better traffic flow, lesser wear and tear on vehicles verification, more safety of travel, and fewer accidents. Smoother roads reduce driver and passenger facalities, saving lives and lessening the economic impact due to accidents.
  • While increased may be one management measure of traffic, drivers will be forced to consider routes or other times of travel not at peak hours. In this way, it may alleviate congestion on extremely busy roads and allow for smoother passage, decreasing travel times.
  • It would further encourage the transport operators to make optimal use of logistics and transportation practices, since any increase in the prices of the tolls would act as an added incentive.Thus, with the rise in operating costs, the companies will have more effective load efficiency, decrease the numbers of empty runs, and have route planning.
  • The revenue added encourages public-private partnership in groundwork development. A government that shows seriousness in maintaining and constructing road networks attracts private investors for its future projects. This may offer a great opportunity in innovation, speedier completion, and value addition in service delivery.
  • The main frame investments bring in jobs in construction, maintenance, and allied industries using the revenue collected as tolls. A proper transportation system is obviously appealing to investors and thus helps in economic development.
  • Equity in the use of roads is further manifested in the fact that those who use the roads contribute to their maintenance and development. This will lead to an effective application of the user-pays principle in ensuring that the cost of maintaining roads is actually shared among road users.
  • Higher tolls would reduce the number of single-occupancy drivers, they can use instead another mode of travel such as public transportation. This shift would unblock the flow of traffic and ease travel expenses that each person faces regularly.

The Potential Impact of the Rise of Motorway Toll Tax Update

It may have following effects:

Generation of Revenue: This is also expected to provide the government with alternative means of raising funds to finance road infrastructure and other road activities.

Burden on Transporters: Increased operational cost may rise the charges of transportation by transporters.

Price Impact: Higher transportation costs can be reflected in higher prices for goods and services, consumer-bound.

Potential diversion to alternative routes: Some owners would avoid paying the increased by using alternative routes. This would lead to a crowding shift to the secondary roads

List of Highways and Motorway Toll Tax Update Affected

Following national highways and Motorway Toll Tax Update will observe new:

M-1 (Islamabad-Peshawar Motorway)

M-3 (Lahore-Abdul Hakeem Motorway)

M-4 (Faisalabad-Multan Motorway)

M-5 (Sukkur-Multan Motorway)

M-15 (Hazara Motorway)

Havelian-Mansehra Expressway

N-5 (Grand Trunk Road)

Kohat Tunnel

N-75 Highway

Toll Taxes on National Highway

Charges on national highways, for different categories of vehicles, have been enhanced as under:

Category of VehiclesOld RatesNew RatesIncrease
Car 304033.33%
Wagon507040%
Bus10013030%
2-Axle Truck12016033.33%
Large Truck25035040%

Motorway Toll Tax Update Kohat Tunnel Rates

Below are the revised Kohat Tunnel for the following types of vehicles:

Category of VehicleOld RateNew RateIncrease
Car7010042.86%
Wagon24032033.33%
Bus29040037.93%
2-Axle Truck29040037.93%
Large Truck44060036.36%

TOLL TAX  OF M-1 Motorway Toll Tax Update

Following are the revised charges for vehicles on the M-1 motorway (Islamabad-Peshawar):

Types of VehicleOld rateRevised RateIncrease
Car24035045.83%
Wagon40055037.5%
12 Seater55070027.27%
Mini Bus790100026.58%
Bus1040130025%
Axle Truck1270150018.11%

Toll Tax Rates for M-3 Motorway Toll Tax Update

The following charges have been enhanced for the vehicles on the M-3 Motorway, Lahore-Abdul Hakeem.

Vehicle CategoryOld RatesNew RatesIncrease
Car35050042.86%
Wagon57075031.58%
13-24 Seat Bus850115035.29%
Bus1200150025%
Axle Truck1500210040%
Large Truck1910250030.89%

Toll Tax Rates of M-4 Motorway

Following are the current and new for different types of vehicles on M-4 Motorway:

Vehicle CategoryOld RatesNew RatesIncrease
Car51065027.45%
Wagon75095026.67%
13-24 Seat Bus1050135028.57%
Bus1400180028.57%
Axle Truck1800240033.33%
Large Truck2300300030.43%

M-5 Motorway Toll Tax Update Rates

Toll tax rates of vehicles have been on the M-5 Motorway (Multan-Sukkur) vide under:

Vehicle CategoryOld RatesNew RatesIncrease
Car68090032.35%
Wagon980130032.65%
13-24 Seat Coach1450190031.03%
Bus2060260026.21%
Axle Truck2670350031.09%
Large Truck3290450036.78%

Motorway Toll Tax Update Rates E-35 Expressway

The Charges for vehicles at E-35 Expressway (Hassanabdal-Havelian-Mansehra) are as under:

Vehicle CategoryOld RatesNew RatesIncrease
Car 13018038.46%
Wagon21028033.33%
13-24 Seat Coach30040033.33%
Bus43056030.23%
Axle Truck56075033.93%
Large Trailer68090032.35%

Effect On the Travellers

The rise in toll taxes affects and impacts travelers in several ways, with higher costs, changes in routes or travel mode, and shifting to avoid it, which may result in congestion on other roads and increases in costs for delivery companies that could, in turn, raise the prices for a product in general.

Increasing the fee will first and foremost affect the lowest-income citizens, and therefore, is something for whom toll discounts or exemptions could be provided.

Public Sentiment and Acceptance any toll increase should rest on the trust that the public has in ensuring that any such revenues are spent on the improvement of Base Structure.

Conclusion

This increase in the toll tax on national highways and motorways toll tax update is one of the major moves of the National Highway Authority to gain sufficient money for the overall development and maintenance of road infrastructure. While the government intends to take this step out of necessity, the stakeholders, especially transporters and the general public, have differed over the issue, citing denting effects on their economy. How far different sectors will welcome this change in the new rates of it, and whether the accruing benefits due to this increase will outweigh the challenges faced by those affected due to this rise, remains to be seen.

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