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The Himachal Pradesh government has initiated a review of its recent decision to sharply increase entry fees on vehicles from other states, following strong objections from Punjab and protests in border areas.
The Cabinet met today in Shimla, headed by the Chief Minister Sukhvinder Singh Sukhu. The issue, which was also raised in the Punjab Assembly, prompted the Chief Minister to seek a detailed review from the Excise and Taxation Department. The move comes amid concerns of a possible retaliatory tax by Punjab, which had begun preparations to impose a reciprocal entry levy. The Himachal government had implemented a significant hike in entry fees effective April 1, increasing the toll for cars from Rs 70 to Rs 130. Similar increases were introduced across other vehicle categories at six entry barriers across the state. Industry Minister Harshvardhan Chauhan said the matter was discussed extensively during a Cabinet meeting. "The Chief Minister has spoken to the Punjab Chief Minister Bhagwant Mann to understand their specific objections. A review has been sought from the Excise and Taxation Department," he said. He added that the steepest objection has been to the increase in entry fee for vehicles up to six seats, where the rate was almost doubled, while hikes in other categories were relatively marginal. On whether the government would roll back the hike, Chauhan said discussions are ongoing. "Tenders for border entry points have already been awarded. The government is examining how the rates can be rationalised. A final decision will be taken after the department submits its report," he said. Earlier in the day, former Chief Minister Jai Ram Thakur claimed that the opposition's protest against the move had forced the government to reconsider. He argued that the decision could have adversely impacted tourism in the hill state and reduced overall revenue. "The decision was taken to boost state revenue, which is the government's right. However, discussions have already taken place with Punjab, and a balanced solution will be worked out," he said. The development indicates a possible recalibration of the policy as the state government seeks to balance revenue considerations with inter-state relations and stakeholder concerns. (ANI)
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