Himachal Pradesh Government Reverses Vehicle Entry Tax Increase After Neighboring States Protest
Shimla: In a significant policy reversal, the Himachal Pradesh government on Tuesday withdrew its controversial decision to hike entry tax for vehicles from outside the state. This rollback came following intense protests from neighboring Punjab and Haryana, which had threatened to escalate into border tensions.
Tax Hike Details and Immediate Rollback
The proposed increase, which was scheduled to take effect from March 31 midnight, would have raised the fee for five-seater vehicles from Rs 70 to Rs 170. Similarly, the tax for six-to-12-seater vehicles was set to increase from Rs 110 to Rs 130. However, Chief Minister Sukhvinder Singh Sukhu announced during the ongoing budget session in the legislative assembly that the government has decided to maintain the existing rates of Rs 70 for five-seaters and Rs 110 for six-to-12-seaters.
Escalating Tensions and Political Reactions
The proposed tax hike triggered widespread opposition, with Punjab even raising the matter in its own assembly. Lawmakers there called for retaliatory measures against Himachal vehicles. During protests on the Vidhan Sabha premises, BJP MLA Randhir Sharma warned of escalating tensions along the Punjab-Himachal border, noting that people in Punjab had threatened to block Himachal vehicles if the hike wasn't withdrawn.
In response, Chief Minister Sukhu assured that he would engage with Punjab Chief Minister Bhagwant Singh Mann to resolve the matter amicably. The BJP also protested against another proposed measure—an "orphan and widow cess" on petrol and high-speed diesel.
Robotic Surgery Subsidies and Healthcare Debate
Responding to queries in the House, the Chief Minister clarified that robotic surgeries introduced in state medical colleges are not currently covered under the Ayushman Bharat or Himcare schemes. However, the government is offering a substantial 70% subsidy, reducing the cost for general ward patients to approximately Rs 30,000 per operation, compared to the actual expense of nearly Rs 1 lakh.
Leader of Opposition Jai Ram Thakur raised concerns about accessibility, arguing that such procedures primarily benefit those who can afford them. He questioned the purchase of four to five multi-crore robotic machines, suggesting that two would have been sufficient, and highlighted the limited number of trained doctors and staff. The Chief Minister responded that benefits for economically disadvantaged patients would be considered as the state's financial situation improves.
Milk Procurement and Processing Challenges
Animal Husbandry Minister Chander Kumar informed the assembly that pending payments to milk producers for February and March will be cleared in April. He revealed that the state has 761 registered dairy societies with 39,690 members. The minister acknowledged that the state lacks sufficient processing capacity for all procured milk, resulting in surplus being sold to Mother Dairy.
To address this issue, the government is establishing new processing and chilling plants. Chief Minister Sukhu intervened to assure that in the coming year, efforts will be made to ensure milk procured from local farmers is marketed within Himachal Pradesh rather than being sold to outside brands.
Legislative Measures and Policy Initiatives
The legislative assembly passed several important bills and resolutions on Tuesday:
- Stamp Duty Amendment: The Indian Stamp (Himachal Pradesh Amendment) Bill, 2026, extends the limitation period from three years to ten years for initiating proceedings and recovering deficient stamp duty in cases of property undervaluation. It also clarifies concessional stamp duty rates for women on transactions up to Rs 80 lakh, extending this benefit to property exchanges between unrelated male and female parties.
- Shimla Pedestrian Safety Bill: Chief Minister Sukhu introduced 'The Shimla Road Users and Pedestrians (Public Safety and Convenience) Amendment Bill, 2026,' aimed at curbing rising vehicular traffic on sealed and restricted roads in Shimla. The bill seeks to preserve the historic vehicle-free character of the Mall Road area and ensure pedestrian safety through increased permit fees and penalties for violations.
- Apple Grower Protection Resolution: The assembly passed a resolution urging the government to frame a policy protecting Himachal's apple and fruit growers amid free trade agreements with the European Union, the United States, New Zealand, and other countries. The resolution highlighted that reduced import duties by the central government have severely impacted the state's Rs 5,000 crore apple economy, as well as growers in Uttarakhand and Jammu and Kashmir.
Zero-Hour Concerns and Assembly Proceedings
BJP MLA Randhir Sharma raised concerns during the zero hour, stating that the state government is not taking issues raised in this segment of Vidhan Sabha proceedings seriously. He noted that he had not received replies to his ten questions raised thus far. Speaker Kuldeep Singh Pathania assured the House that he is monitoring such matters and will form a committee, summoning department heads if necessary.
The budget session continues with these developments highlighting the complex interplay between state policies, inter-state relations, and economic considerations affecting Himachal Pradesh and its neighbors.
