The Madhya Pradesh High Court has ruled that Gram Panchayats do not have the authority to impose taxes, including toll taxes, on motor vehicles. This decision came while dismissing a petition from the Hargarh Gram Panchayat which had challenged a directive from the state revenue department to cease such collections. Justice Vishal Dhagat emphasized that all motor-driven vehicles are classified as 'motor vehicles' under current law, which exempts them from local taxation. The court noted the ambiguity in relevant provisions of the Panchayat Raj Act, but ultimately concluded that Gram Panchayats can only levy taxes on non-motorized vehicles. The ruling reinforces the limits of local government authority in taxation matters, as the state government's opposition highlighted the lack of a legal resolution supporting the Panchayat's actions. This verdict clarifies the legal framework surrounding local taxation in Madhya Pradesh.