Hours after Himachal Pradesh Chief Minister (CM) Sukhvinder Singh Sukhu on Tuesday announced the rollback of the recent increase in entry tax for vehicles in border areas following widespread protests, the state government reduced the entry tax on passenger vehicles to Rs 100 from Rs 130.
The tax on five-seater vehicles had been increased from Rs 70 to Rs 130, and for 6–12 seater passenger vehicles from Rs 110 to Rs 130. Now, both categories will have to pay Rs 100 as tax.
Besides, the government has decided to provide concessional passes to all people living within a radius of five km from the barrier.
The move will benefit people residing within the 5 km limit in neighbouring states as well. A person will have to produce a certificate of residence within the prescribed distance to obtain the concessional pass from the SDM or tehsildar.
As per information shared by the Excise Department, commercial light vehicles registered in the state have been exempted from paying toll tax.
The hike in entry tax had turned into a volatile issue, with protests erupting in border areas against the move. The enhanced taxes were scheduled to come into effect from April 1.
While raising the matter in the Assembly on Tuesday, BJP MLA Randhir Sharma said some protesting groups in Punjab had threatened that vehicles from Himachal would not be allowed into Punjab from the next day.
Responding to the concerns raised by Sharma, the CM said the government would withdraw the hike in entry tax on five-seater and 6–12 seater vehicles. Later, the hike was rationalised, not completely withdrawn.
While making a statement in the House, Sukhu said confusion was being spread in the border areas of Punjab and Haryana that the Himachal government had significantly increased toll tax.
“I would like to clarify that the hike is not much. The tax was increased only for heavy vehicles like three-axle trucks and trailers,” he said.
