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Himachal Reviews Vehicle Entry Fee Hike After Punjab's Strong Objections

The Himachal Pradesh government has ordered a review of its decision to significantly increase entry fees for vehicles from other states. The move follows strong objections from the Punjab government, which had threatened a retaliatory levy. The proposed hike would see tolls for cars nearly double at six entry points across the state. A final decision is pending a report from the Excise and Taxation Department as the state balances revenue needs with inter-state relations.

Key Points: Himachal Reviews Out-of-State Vehicle Fee Hike After Punjab Protest

  • Himachal reviews steep entry fee hike
  • Punjab threatened reciprocal tax
  • Fee for cars set to jump from Rs 70 to Rs 130
  • Decision aimed to boost state revenue
  • Final call after department report
2 min read

Himachal govt orders review of entry fee hike on out of state vehicles after Punjab objects

Himachal Pradesh orders review of steep entry fee hike for vehicles from other states following objections from Punjab and border protests.

"The Chief Minister has spoken to the Punjab Chief Minister... to understand their specific objections. - Harshvardhan Chauhan"

Shimla, March 23

The Himachal Pradesh government has initiated a review of its recent decision to sharply increase entry fees on vehicles from other states, following strong objections from Punjab and protests in border areas.

The Cabinet met today in Shimla, headed by the Chief Minister Sukhvinder Singh Sukhu.

The issue, which was also raised in the Punjab Assembly, prompted the Chief Minister to seek a detailed review from the Excise and Taxation Department. The move comes amid concerns of a possible retaliatory tax by Punjab, which had begun preparations to impose a reciprocal entry levy.

The Himachal government had implemented a significant hike in entry fees effective April 1, increasing the toll for cars from Rs 70 to Rs 130. Similar increases were introduced across other vehicle categories at six entry barriers across the state.

Industry Minister Harshvardhan Chauhan said the matter was discussed extensively during a Cabinet meeting. "The Chief Minister has spoken to the Punjab Chief Minister Bhagwant Mann to understand their specific objections. A review has been sought from the Excise and Taxation Department," he said.

He added that the steepest objection has been to the increase in entry fee for vehicles up to six seats, where the rate was almost doubled, while hikes in other categories were relatively marginal.

On whether the government would roll back the hike, Chauhan said discussions are ongoing. "Tenders for border entry points have already been awarded. The government is examining how the rates can be rationalised. A final decision will be taken after the department submits its report," he said.

Earlier in the day, former Chief Minister Jai Ram Thakur claimed that the opposition's protest against the move had forced the government to reconsider. He argued that the decision could have adversely impacted tourism in the hill state and reduced overall revenue.

"The decision was taken to boost state revenue, which is the government's right. However, discussions have already taken place with Punjab, and a balanced solution will be worked out," he said.

The development indicates a possible recalibration of the policy as the state government seeks to balance revenue considerations with inter-state relations and stakeholder concerns.

- ANI

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Reader Comments

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Priyanka N
As someone from Punjab, I appreciate the review. Many of us visit Himachal every year. A sudden hike feels unfair. But I also understand Himachal needs revenue for road maintenance and infrastructure. Hope they find a middle ground that doesn't hurt tourism or start a tax war between states. 🤝
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Aman W
This is a classic case of poor planning. Announcing a hike effective April 1 and then reviewing it after protests? The government should have done stakeholder consultations first, especially with neighboring states. It creates unnecessary uncertainty for everyone - tourists, taxi unions, and hotel owners.
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Sarah B
Visiting from the UK, I've seen similar local taxes in Europe. While states have the right to raise funds, communication and gradual implementation are key. A sudden doubling will shock the system. Glad they're talking it out. A beautiful state like Himachal needs sustainable policies.
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Karthik V
The former CM has a point. If tourism drops, the overall revenue loss could be greater than the gain from higher entry fees. They should consider a smaller, incremental hike. Maybe Rs 100 instead of 130? Also, why only target out-of-state vehicles? What about improving collection from within the state?
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Nisha Z
Finally some sense prevails! A reciprocal tax by Punjab would have hurt truckers and the apple industry the most. Our states are connected economically. We need cooperation, not confrontation. Hope the review leads to a sensible solution. 🙏

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