Tensions Rise Over Himachal Pradesh Entry Tax Hike

The Himachal Pradesh government, led by Chief Minister Sukhvinder Singh Sukhu, increased the entry tax tied to the FASTag system on National Highways, sparking unrest. Large vehicles face a tax rise from Rs 130 to Rs 170. Concerns are heightened due to potential retaliatory actions from Punjab, urging dialogues to prevent interstate tensions.


Devdiscourse News Desk | Shimla | Updated: 30-03-2026 18:44 IST | Created: 30-03-2026 18:44 IST
Tensions Rise Over Himachal Pradesh Entry Tax Hike
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  • India

The Himachal Pradesh government has increased the existing entry tax, which has been operational for 30 years, due to its integration with the FASTag system. Chief Minister Sukhvinder Singh Sukhu confirmed this development, which primarily affects large vehicles, now facing a tax increase of Rs 40 from Rs 130 to Rs 170.

This hike has stirred unrest, particularly affecting interstate travel with Punjab, whose Finance Minister warned of retaliatory actions. Concerns have risen over potential tensions between the two states, necessitating urgent dialogue to mitigate possible conflicts for Himachal Pradesh residents entering Punjab.

Opposition leaders and stakeholders, including the taxi union and tourism entities, are urging the state government to reevaluate the tax hike. Meanwhile, protests are looming at borders, with urgent calls for resolutions to prevent disruptions or law and order issues as deadlines approach.

(With inputs from agencies.)

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