After rollback, Himachal makes U-turn on entry tax, fixes passenger vehicle fee at Rs 100

Himachal Pradesh: Himachal Pradesh Chief Minister Sukhwinder Singh Sukhu on Tuesday announced the rollback of the recent increase in entry tax for vehicles in border areas. Hours later, the state government reduced the entry tax on passenger vehicles from ₹130 to ₹100. The tax on five-seater vehicles had been increased from ₹70 to ₹130, and on 6-12-seater passenger vehicles from ₹110 to ₹130. Now, both categories will have to pay a tax of ₹100. Additionally, the government has decided to issue concessional passes to all residents within a five-kilometer radius of the barrier. This move will also benefit those living within the 5-kilometer limit in neighboring states. To obtain a concessional pass, a person must produce a certificate from the SDM or Tehsildar proving their residence within the prescribed distance.

According to information provided by the Excise Department, commercial light vehicles registered in the state have been exempted from paying toll tax. The increase in entry tax had become a major issue, sparking protests in border areas. The increased tax was to come into effect from April 1. Raising the issue in the Assembly on Tuesday, BJP MLA Randhir Sharma said that some protesting groups in Punjab had threatened to block vehicles from Himachal Pradesh from entering Punjab from the following day. Responding to Sharma’s concerns, the Chief Minister said the government would roll back the increase in entry tax on five-seater and 6-12-seater vehicles. Later, the increase was adjusted, but not completely withdrawn. Making a statement in the House, Sukhu said that confusion was being spread in the border areas of Punjab and Haryana that the Himachal government had significantly increased toll taxes. He said, “I would like to clarify that the increase is not significant. The tax was increased only for heavy vehicles like three-axle trucks and trailers.”