CDA to Start Collecting Toll Tax in Islamabad

Islamabad residents are going to witness a significant setback with the CDA’s recent announcement of resuming toll tax collection at entry points — a practice that remained suspended for ten years. This tactical move by the CDA is part of a wider plan that aims at improving revenue as well as dealing with the lagging financial issues affecting the authority.

The final plans include setting up toll tax collection points at strategic internal entry points in Islamabad. The CDA board has given formal approval for this initiative, indicating a major policy change. According to the details, these tax collection stations will be established on six internal entry points, including major areas like Srinagar Highway, Islamabad Expressway, IJP Road Murree Road, and Margalla Avenue.

The coordination between the Planning and Revenue wings of CDA will be helpful in arriving at the final tax rates. CDA officials would point out that reintroduction of toll taxes is a proactive measure to diversify the authority’s sources of income. In the long run, higher revenues will benefit infrastructure development and provision of services to both residents and visitors in the capital city.

This decision, however, deviates from the 2013 announcement of the then Minister of Interior to terminate all tax collection points on internal roads in Islamabad. This move was well received by city dwellers as it relieved them of the burden of toll taxes.

Nevertheless, in 2019 the Metropolitan Corporation allowed the reintroduction of toll taxes at entry points in Islamabad. Unfortunately, although the plan was approved, it could not be implemented at that moment. The recent move by CDA is taken to enforce this decision, which might affect the daily life of commuters in the city.