Supreme Court Orders Local Levels to Halt Collection of Road Use Fees on National Highways

Kathmandu. The Supreme Court has issued an interim order directing local levels not to collect taxes and road use fees from vehicles operating on national, auxiliary, and postal highways.

The order was issued by a joint bench of the Supreme Court while hearing a writ petition filed by Rajendra Bikram Baniya, Chairman of the Nepal Truck Transport Entrepreneurs' Federation, on Bhadra 22, naming the Office of the Prime Minister and the Council of Ministers in Singha Durbar as respondents.

The joint bench comprised Justices Mahesh Sharma Paudel and Balkrishna Dhakal. Senior Advocate Uddhav Prasad Chaulagai and Advocate Wakil Prasad Gautam argued on behalf of the petitioner, while Deputy Attorney General Kailash Khatri from the Office of the Attorney General argued for the respondent Prime Minister and Council of Ministers Secretariat. Advocate Bidyadevi Katuwal and Jivan Bahadur Basnet were present on behalf of the Jeetpur-Simara Sub-Metropolitan City.

The petition had sought an interim order to immediately stop the unauthorized collection of road use fees and taxes from vehicles by local levels.

The court based its decision on the fact that the contract agreement made with the Jeetpur-Simara Sub-Metropolitan City on Asar 30, 2082, stipulated that road use fees should not be collected from vehicles such as ambulances, hearses, and fire engines, and that fees should not be collected by setting up gates or tables on routes including Tribhuvan Highway, Postal Highway, and Mahendra Highway.

Furthermore, the order mentioned the correspondence sent by the Bara District Administration Office to all local levels instructing them not to collect taxes on national and auxiliary highways. The Supreme Court issued an interim order in the name of the respondents, pursuant to Rule 49 of the Supreme Court Rules, 2074, prohibiting the collection of taxes from vehicles plying on national, auxiliary, and postal highways by setting up gates or through any other means, from the perspective of balancing convenience.

The order was issued on Magh 28. Federation Chairman Baniya welcomed the court's order and warned that if any local level attempts to illegally collect taxes on national highways from now on, a contempt of court case would be filed against the respective mayor. He also warned that the previously made contract agreements were against the law and demanded their cancellation.

Chairman Baniya emphasized that the practice of collecting taxes by placing gates on highways has increased the financial burden on transport entrepreneurs and affected consumers, stressing that the court's order must be fully complied with.