Punjab Weighs Entry Tax in Response to Himachal's Fee Hike

The Punjab government, led by Finance Minister Harpal Singh Cheema, is contemplating an entry tax on vehicles from Himachal Pradesh. This consideration comes as a reaction to Himachal's significant tax hike on out-of-state vehicles, sparking concerns about fiscal measures between the neighboring states.

In an address to the state assembly, Punjab's Finance Minister Harpal Singh Cheema revealed that the government is considering imposing an entry tax on vehicles registered in Himachal Pradesh. The move follows an 'exorbitant' entry tax hike by the Himachal Congress government on vehicles from other states.

Cheema criticized the fiscal tactics of the Himachal government, led by Sukvinder Singh Sukhu, asserting that the tax hike was a desperate measure from a near-bankrupt administration. He emphasized that the financial crunch in Himachal Pradesh has led to frozen employee allowances and halted new recruitments, with schemes like free electricity for the poor being discontinued.

The minister noted the adverse impact on frequent travelers and villagers near the Punjab-Himachal border following the tax increment. Cheema is exploring legal avenues to assess whether Punjab can reciprocally tax Himachal vehicles, consulting with legal experts and relevant department heads to move forward.

(With inputs from agencies.)