Himachal Pradesh Government Reverses Entry Tax Hike Amid Backlash

Political Reversal in Himachal Pradesh

Munish Sood
Mandi

In a significant political development, the Himachal Pradesh administration, under Chief Minister Sukhvinder Singh Sukhu, has decided to retract its controversial increase in entry taxes following substantial opposition from various parties, transport associations, and neighboring states.

During the current budget session, the Chief Minister announced the restoration of the previous fee structure, effectively nullifying the recently implemented revised rates. Vehicles entering the state will now incur charges based on the former system.

Initially, the government aimed to consolidate various levies into a unified FASTag-based system. However, due to rising confusion and protests, it has reverted to the old system with distinct charges.

In an effort to manage the situation, Sukhu mentioned that he had discussions with Punjab Congress leaders Amarinder Singh Raja Warring and Partap Singh Bajwa. He also attempted to reach out to Punjab Chief Minister Bhagwant Mann, although the call reportedly did not connect.

This rollback comes after severe criticism from the Bharatiya Janata Party (BJP), which labeled the tax hike as 'anti-people.' BJP legislators, led by Opposition Leader Jai Ram Thakur, protested and accused the government of imposing burdensome tax measures on citizens.

The controversy erupted following a notification on February 18 that significantly raised entry tax rates for vehicles from neighboring states. For instance, car entry fees surged from ₹70 to ₹170, while passenger vehicle fees (12+1) increased from ₹110 to ₹170. Heavy vehicles faced hikes up to ₹900, construction machinery charges rose from ₹570 to ₹800, and tractor entry fees increased from ₹70 to ₹100.

This decision sparked widespread outrage among transporters and tourism stakeholders, who warned of potential blockades that could disrupt interstate movement into Himachal Pradesh.

Critics contended that the tax hike could have severely affected the state's tourism-dependent economy and hindered trade in border districts, where the daily movement of vehicles is vital for economic activity.

With the rollback, the previous rates have been reinstated, providing relief to commuters and transport operators. Cars will again be charged ₹70, 6–12 seater vehicles ₹110, six-tyre trucks ₹320, and double-axle vehicles ₹570.

This decision is applicable across major entry points in the state.

The rapid reversal underscores the extent of public and political pressure on the Sukhu administration, raising critical questions regarding policy planning, stakeholder engagement, and the timing of significant fiscal decisions.