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Entry fee storm: Himachal to reconsider its decision on hiking entry fee for vehicles from other states
From April 1, the Himachal government had planned to increase the entry toll for private/personal cars from ₹70 to ₹170
The Himachal Pradesh government has decided to review its decision to sharply increase entry fee for vehicles from other states, following strong objections from Punjab and protests in border areas, said people familiar with the matter.
The issued was discussed in a cabinet meeting, headed by chief minister Sukhvinder Singh Sukhu, here on Monday. From April 1, the Himachal government had planned to increase the entry toll for private/personal cars from ₹70 to ₹170. Similar increases were introduced across other vehicle categories at six entry barriers across the state.
The issue, which was also raised in the Punjab assembly, prompted Sukhu 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. On Monday, Punjab education minister Harjot Singh Bains lashed out at the Himachal government for a steep hike in entry fees. “We will impose a hefty tax on commercial vehicles from Himachal Pradesh entering Punjab. It will not be ₹100 or ₹200 — we are considering ₹1,000 or more. This will put a financial dent on Himachal’s industries and bring the state to its knees,” Bains said.
Himachal industry minister Harshvardhan Chauhan said the matter was discussed extensively during the cabinet meeting. “The chief minister has spoken to his Punjab counterpart Bhagwant Mann to understand their specific objections. A review has been sought from the excise and taxation department,” he added.
On whether the government would roll back the hike, Chauhan said discussions are going on. “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.
Former CM Jai Ram Thakur claimed that the Opposition’s protest against the move had forced the government to reconsider its decision on entry fee hike. 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 added.
Earlier, Bains termed Himachal’s move as “illegal”. “It is illegal to impose such taxes on vehicles plying through national highways. We are mulling legal options and will approach the Supreme Court, if need arises, against this decision,” he added.
