Himachal CM rolls back vehicle entry tax hike after protests in Punjab, Haryana

The Himachal Pradesh government on Tuesday rolled back the proposed hike in entry tax on passenger vehicles entering the state after protests erupted in neighbouring Punjab and Haryana and opposition parties raised the issue in the assembly.

Chief Minister Sukhvinder Singh Sukhu announced the decision during the ongoing budget session of the Himachal Pradesh Vidhan Sabha , stating that the earlier rates would continue. Under the rollback, five-seater vehicles will continue to pay Rs 70 and six-to-12-seater vehicles Rs 110 , restoring the previous charges. The government had earlier planned to raise the tax to Rs 170 for five-seater vehicles and Rs 130 for vehicles with six to 12 seats , with the new rates scheduled to take effect from midnight on March 31.

The proposed hike triggered strong protests in border districts and criticism from transporters, taxi operators and tourism stakeholders who feared it would discourage visitors from neighbouring states. Demonstrators gathered at several interstate entry points, and in one protest residents from Haryana blocked the Barotiwala entry point in Solan district, causing a traffic jam that lasted nearly two and a half hours.

The controversy also escalated politically, with the matter reaching the Punjab Vidhan Sabha , where lawmakers warned of possible reciprocal taxes on Himachal-registered vehicles if the decision was not withdrawn. BJP legislators in Himachal Pradesh also staged protests and raised the issue in the assembly, warning of rising tensions along the Punjab–Himachal border.

Sukhu said the government had not imposed any new entry tax , noting that the levy has existed for nearly three decades and the revision was linked to integration of toll collection with the FASTag system on national highways . He maintained that the increase appeared steep due to the technical integration but described it as marginal for most vehicle categories.

To address the concerns of frequent commuters, the chief minister said the government would provide special passes for residents living within a five-kilometre radius of border entry points , ensuring hassle-free movement for local people who regularly cross the state boundary.

With the rollback announced in the assembly, authorities expect the protests at border points to subside and interstate travel and tourism to normalise.