A pattern is emerging across South Asia this week: governments retreating from tax hikes in the face of public pressure.
In Pakistan, the government withdrew a 25% quarterly increase in toll taxes on national highways, freezing all adjustments for the 2025–26 fiscal year. The decision came during a high-level review meeting of the National Highway Authority (NHA), chaired by Communications Minister Abdul Aleem Khan, acting on “special directives” from Prime Minister Shehbaz Sharif. The NHA was ordered to withdraw its April 1 notification and halt the increase that had been scheduled to take effect on April 5.
Meanwhile in India, the Mysuru civic body reversed a newly introduced Motor Vehicle Infrastructure Cess after widespread complaints. Citizens objected that linking the motor vehicle cess to property tax was “unscientific,” and the backlash was swift enough to force a withdrawal.
In France, the government is dealing with a different kind of fiscal headache: it estimated that the state collected approximately €270 million in surplus fuel taxes in March alone — a politically sensitive figure at a time when fuel prices remain a hot-button issue for French consumers.
