SHIMLA, March 24 — The Himachal Pradesh government has decided to reconsider its recent decision to increase entry fees for out-of-state vehicles following intense opposition from neighboring Punjab and localized protests in border regions. The matter was discussed during a cabinet meeting chaired by Chief Minister Sukhvinder Singh Sukhu on Monday, where officials sought to address the growing diplomatic and economic friction.
The proposed hike, scheduled to take effect April 1, would have seen entry tolls for private cars jump from ₹70 to ₹170, with similar increases across various vehicle categories at six state barriers. Industry Minister Harshvardhan Chauhan stated that the Chief Minister has already initiated a dialogue with Punjab Chief Minister Bhagwant Mann to understand the specific objections raised by the neighboring state. Chauhan affirmed that the excise and taxation department has been tasked with providing a detailed review to rationalise these rates.
The policy shift comes as Punjab officials suggested the possibility of a reciprocal tax that could impact Himachal’s industrial sector. Punjab Education Minister Harjot Singh Bains asserted that his government is considering a hefty levy, potentially exceeding ₹1,000, on commercial vehicles entering Punjab from Himachal. Bains maintained that such a move would serve as a direct financial deterrent and urged the Himachal administration to rethink its current trajectory.
While the Himachal government has already awarded tenders for border entry points, Chauhan noted that discussions are ongoing regarding how to implement adjustments without disrupting existing contracts. He asserted that a final decision will be reached once the departmental report is submitted. The administration declared that the goal remains to find a balanced approach that maintains state revenue without causing undue hardship to commuters or damaging inter-state relations.
