Munish Sood
Mandi
In a major political setback, the Himachal Pradesh government led by Chief Minister Sukhvinder Singh Sukhu has rolled back its controversial entry tax hike following intense backlash from opposition parties, transporters, and neighbouring states.
Announcing the decision during the ongoing budget session, the Chief Minister said that the earlier fee structure would be restored, effectively reversing the revised rates introduced recently. Vehicles entering the state will now be charged as per the previous system.
The government had earlier attempted to merge multiple levies into a FASTag-based unified system. However, amid confusion and mounting protests, it has now reverted to the old mechanism with separate charges.
In a clear sign of damage control, Sukhu said he had spoken to Punjab Congress leaders Amarinder Singh Raja Warring and Partap Singh Bajwa. He also attempted to contact Punjab Chief Minister Bhagwant Mann, though the call reportedly did not connect.
The rollback follows sharp criticism from the Bharatiya Janata Party (BJP), which termed the move “anti-people.” Led by Leader of Opposition Jai Ram Thakur, BJP legislators staged protests and accused the government of burdening citizens with ill-timed tax measures.
The controversy began after a February 18 notification sharply increased entry tax rates for vehicles from neighbouring states. Car entry fees were raised from ₹70 to ₹170, while passenger vehicles (12+1) were increased from ₹110 to ₹170. Heavy vehicles saw hikes up to ₹900, construction machinery charges rose from ₹570 to ₹800, and tractor entry fees increased from ₹70 to ₹100.
The move triggered widespread outrage among transporters and tourism stakeholders, with warnings of possible blockades affecting interstate movement into Himachal Pradesh.
Critics argued that the decision could have severely impacted the state’s tourism-driven economy and disrupted trade in border districts, where daily movement of vehicles plays a crucial role in economic activity.
Following the rollback, the earlier rates have now been reinstated, bringing relief to commuters and transport operators. Cars will again be charged ₹70, 6–12 seater vehicles ₹110, six-tyre trucks ₹320, and double-axle vehicles ₹570.
The decision applies across key entry barriers in the state.
The swift reversal highlights the scale of public and political pressure on the Sukhu government, raising serious questions over policy planning, stakeholder consultation, and the timing of major fiscal decisions.
