Himachal Govt rolls back entry tax hike hours before implementation amid protests
Shashi Bhushan Purohit
Shimla, March 31, 2026: In a major U-turn, the Himachal Pradesh Government has withdrawn its decision to increase entry tax on vehicles from neighbouring states, just hours before the revised rates were set to come into effect at midnight.
Chief Minister Sukhvinder Singh Sukhu announced in the Assembly that the earlier rates will continue, with ₹70 for five-seater vehicles and ₹110 for six- to 12-seater vehicles.
The rollback comes after strong opposition from residents and transporters in border areas, particularly in Punjab and Haryana, where protests had intensified against the proposed hike. Demonstrations were also reported within Himachal Pradesh.
Earlier, the state government had increased the entry tax for five-seater vehicles from ₹70 to ₹170 and for six- to 12-seater vehicles from ₹110 to ₹130. The revised rates were scheduled to be implemented from midnight on March 31.
The move had triggered tensions between neighbouring states, with warnings of blocking Himachal entry points and discussions of reciprocal tax measures. The issue was also raised in the Punjab Assembly.
With the latest decision, the government has stepped back from the hike, aiming to ease tensions and address public concerns.