Himachal's Entry Tax Hike Sparks Protests and Political Tensions with Punjab

Chandigarh: The Himachal Pradesh government's decision to sharply increase entry taxes on vehicles, effective from April 11, has ignited a political dispute between the AAP-led Punjab government and the Congress-led Himachal Pradesh government. Punjab has responded by threatening to levy its own entry tax on commercial vehicles entering or leaving Himachal Pradesh. The Punjab government has also indicated it might approach the Supreme Court over the matter.

Originally, the Himachal government proposed a hike in the entry tax for private vehicles from Rs 70 to Rs 170 for cars from other states, along with increases for other vehicle categories, at six major entry points across the state. The move, which was set to come into effect on April 1, has sparked significant opposition from neighboring Punjab, prompting the Himachal government to reconsider its decision. Following pressure from Punjab, discussions were held at a Himachal cabinet meeting, where Industry Minister Harshvardhan Chauhan confirmed that Chief Minister Sukhu had spoken with Punjab CM Bhagwant Mann to understand the concerns. As a result, Himachal has decided to review the tax increase.

Meanwhile, protests have erupted in Punjab, especially in the Ghanauli area of Ropar district, where farmers and local residents blocked the Ropar-Nalagarh road for nearly two hours on Tuesday. The protesters are demanding an immediate rollback of the increased entry tax and have warned that they will intensify their agitation. They also threatened to block interstate traffic starting April 1 if their demands are not met.

The locals from both sides of the border argue that the higher entry taxes will have a detrimental impact on small traders, daily commuters, and transport operations that depend on smooth interstate movement.