Now, Punjab taxi operators up in arms against HP entry tax
The state government has now made it mandatory for the tourist buses to pay between ₹3,000 and ₹6,000 for 13 to 32 seaters vehicles, irrespective of them having an all-India permit or not
Himachal Pradesh government’s decision to impose revised entry tax on taxis and tourist buses from other states has not sit well with travel agents from other the state at the peak of the festive season. After travel agents in Gujarat, West Bengal and Maharashtra boycott Himachal, taxi operators from Chandigarh and Punjab have issued a warning to boycott the state as well over the new taxes.
Earlier, the entry tax were for stage carriage taxes which were not registered under all India temporarily permit . The state government has now made it mandatory for the tourist buses to pay between ₹3,000 and ₹6,000 for 13 to 32 seaters vehicles, irrespective of them having an all-India permit or not. The government had imposed the taxes starting September 1.
Taxis from Chandigarh and Punjab are the primary mode of transportation into the state and the move is set to significantly impact the tourism industry. Chandigarh-Punjab’s Azad Taxi Union president Sharanjit Kalsi expressed the body’s dissatisfaction and said that they have ceased taking bookings for Himachal and are even cancelling bookings they had already accepted.
Kalsi said, “If the taxes on all-India tourist permit vehicles are not revoked by October 15, we will be compelled stop the travel services to Himachal. The taxi operators, who had previously threatened a similar move, had temporarily suspended their strike following assurance from the Solan deputy commissioner.
He said the charged were unreasonable and that they had started diverting tourists to alternative destinations, such as Kashmir, Nainital and Uttarakhand.
Kalsi alleged that their efforts for meet Himachal chief minister Sukhvinder Singh Sukhu were not successful.
The tourism industry in Himachal is suffering a severe blow as most tour and travel agents from Gujarat, Maharashtra and West Bengal are refraining from booking trips to the state due to the additional taxes being levied by the government.
Shimla tourism association president MK Seth President said that a lot of tourists from these states travel to Himachal using buses and tempo travellers. Similarly, most tourists with families come from these three states by train up to Ambala or Chandigarh, and then hire other means of transport to get to Himachal. With the additional taxes being levied on these alternative means, the tourism industry was taking a hit as these travellers were being diverted to other locations, he said.
“The new tax imposed by transport department on tourist buses and tempo travellers will ruin the hotel and tourism industry, that will certainty suffer losses,” he said.
Seth emphasised the critical need to repeal the tax as it continues to adversely affect the tourism industry, which is still recovering from the losses suffered because if the Covid-19 pandemic and the unprecedented disasters caused by the monsoon rains which had led to landslides and floods.
The tourism sector contributed 7% of Himachal’s gross domestic product and 14.42 % in direct and indirect employment in the state. The industry is crucial for generating self-employment opportunities for the people of the state.