The Supreme Court has issued an interim order directing local governments not to collect taxes or road usage fees from vehicles operating on national, feeder, and postal highways.
The order was delivered by a joint bench of Justices Mahesh Sharma Paudel and Bal Krishna Dhakal while hearing a writ petition filed on Bhadra 22 by Nepal Truck Transport Entrepreneurs Federation chair Rajendra Bikram Baniya, who had named the Office of the Prime Minister and Council of Ministers and others as respondents.
Senior advocate Uddhav Prasad Chaulagai and advocate Wakil Prasad Gautam argued on behalf of the petitioner, while Deputy Attorney General Kailash Khatri represented the government. Advocates Bidhyadevi Katuwal and Jeevan Bahadur Basnet appeared on behalf of Jitpur–Simara Sub-Metropolitan City.
The petition claimed that local levels were illegally collecting road usage fees and vehicle taxes and requested an immediate halt. The court based its order on a contract dated Asar 30, 2082, which states that fees cannot be charged to ambulances, hearses, and fire engines, and that no collection booths or desks can be set up to collect fees on highways such as the Tribhuvan Highway, Hulaki Highway, and Mahendra Highway.
The order also references a notice from the District Administration Office Bara instructing local governments not to collect taxes on national and feeder highways. Citing the principle of balance of convenience, the court ordered that no taxes be collected from vehicles on these highways by any means. The interim order was issued on Magh 28.
Federation chair Baniya welcomed the decision and warned that if any local unit attempts to collect illegal taxes on national highways, defamation cases would be filed against the respective mayors. He also stated that previous contracts made for such collections were unlawful and should be scrapped.
He emphasized that roadside tax collection had added financial burdens on transport operators and ultimately affected consumers, and he called for full compliance with the court’s order.
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