In a move that could escalate inter-state tensions, the Aam Aadmi Party (AAP) government in Punjab is exploring the possibility of levying entry tax on vehicles registered in Himachal Pradesh.
State finance and excise and taxation minister Harpal Cheema informed the Punjab assembly on Wednesday that the state is considering this reciprocal measure following the Sukhvinder Singh Sukhu-led Congress government’s decision to hike the entry tax on all non-Himachal registered vehicles entering the state from April 1, 2026.
Responding to a query raised by Rupnagar MLA Dinesh Kumar Chadha, Cheema said that the hill state currently charges all non-Himachal registered vehicles a minimum of ₹70.
Describing the Congress government as being on the “verge of bankruptcy”, the minister accused it of imposing “illegal taxes” on visitors to shore up its finances.
The hike in Himachal Pradesh under the HP Tolls Act, 1975, will see entry fee for all non-Himachal registered private cars and light motor vehicles jump from ₹70 to ₹170 next month. Commercial vehicles face even steeper escalations, with buses and heavy goods carriers to be charged up to ₹600 and ₹900, respectively.
While the Sukhu government justifies the move as essential revenue mobilisation following the discontinuation of the Revenue Deficit Grant, the decision has sparked outrage among daily commuters and transporters in Punjab’s border districts who claim it amounts to double taxation.
{{/usCountry}}While the Sukhu government justifies the move as essential revenue mobilisation following the discontinuation of the Revenue Deficit Grant, the decision has sparked outrage among daily commuters and transporters in Punjab’s border districts who claim it amounts to double taxation.
{{/usCountry}}Cheema said that he intends to coordinate with the local bodies minister to evaluate whether municipal councils situated along the Punjab-Himachal border can independently implement these entry fees on Himachal-registered vehicles. To ensure the move stands up to judicial scrutiny, the minister confirmed he will consult the advocate general and legal experts before finalising the framework.