The Himachal Pradesh entry tax hike has triggered strong protests in Punjab’s border districts. Daily commuters and small business owners say the move will increase their monthly expenses. The new rates will apply from April 1, 2026.
The state has raised the entry fee for local vehicles from Rs 70 to Rs 100. Five-seater vehicles registered in other states will now pay Rs 170 instead of Rs 70. Commercial vehicles will see a sharp increase, with charges rising by up to Rs 800.
Heavy Burden on Daily Commuters
Many residents from Punjab travel to Himachal Pradesh every day for jobs and trade. The higher tax will directly affect their income. Local leaders estimate that frequent travelers may spend nearly Rs 4,000 per month on entry fees alone.
Small traders fear that the entry tax increase will reduce customer flow and hurt cross-border business. Transporters also worry about rising operating costs.
Local Leaders Call the Move Unfair
Paramjit Singh Pamma, a municipal councillor from Nangal and former District Bar Association president, has strongly opposed the decision. He said Himachal Pradesh remains the only state that charges entry tax on vehicles from other states.
He also claimed that border residents face about a 30 percent hike, while others face nearly 150 percent increase. According to him, this decision places an unfair burden on working families.
In June 2025, the Nangal Municipal Council passed a unanimous resolution. The council asked the Punjab Government to impose a similar tax on Himachal-registered vehicles. However, the state government has not taken action so far.
Legal Challenge in Himachal High Court
Advocate Uttansh Monga has filed a petition in the Himachal High Court. He argues that charging entry tax on national highways violates constitutional principles. He also says the move leads to double taxation.
Vehicle owners already pay toll charges to the National Highways Authority of India (NHAI). Adding another state-level tax increases their financial stress. RTI data shows that Himachal Pradesh collects around Rs 150 crore every year from vehicles registered outside the state.
Economic Impact and Public Response
Officials believe the government increased the tax to manage losses caused by cuts in the Revenue Deficit Grant (RDG). However, experts warn that the decision may hurt tourism, local trade, and GST collection.
Residents of Ropar district plan to meet their MLAs and stage protests. Many hope both state governments will hold discussions and find a fair solution.
Conclusion
The Himachal Pradesh entry tax issue has created tension in Punjab’s border regions. Citizens demand relief and clarity from the authorities. The coming weeks will decide whether the government reviews the policy or continues with the revised rates.
