Shimla, March 25: The Himachal Pradesh Assembly witnessed a heated exchange between the ruling Congress and the opposition BJP on Wednesday over the proposed revision in entry tax, with Chief Minister Sukhvinder Singh Sukhu clarifying that no hike has been imposed on light motor vehicles (LMVs).
Responding to concerns raised by legislators, the chief minister said the entry tax applies only to commercial vehicles and accused the opposition of exaggerating the issue. “There is no tax hike for light motor vehicles; the tax applies only to commercial vehicles,” Sukhu said in the House.
He added that entry and toll taxes have been in place for nearly three decades and the current government is not introducing any new levy. “The opposition is exaggerating the issue,” he said.
Highlighting revenue growth, Sukhu informed that toll auction collections have increased from ₹185 crore to ₹228 crore. He attributed the perception of higher rates to the integration of entry tax collection with the FASTag system, which has streamlined the process.
The chief minister said the government is also examining a proposal to merge toll barriers with entry tax collection points where they are located close to each other. He assured that a final decision on the matter would be taken in the upcoming cabinet meeting.
Addressing concerns of residents in border areas adjoining Punjab and Uttarakhand, Sukhu said the government is considering issuing daily commute passes to ease their movement.
The proposed revision in entry tax has drawn objections from neighbouring Punjab, which has hinted at imposing a reciprocal tax on vehicles from Himachal Pradesh. Legislators also flagged concerns about the potential impact on people working across state borders and on the tourism sector.
The Assembly also saw a separate debate over a proposed “widow and orphan cess” of up to ₹5 on petrol and diesel. Clarifying the government’s position, Sukhu said no immediate increase in fuel prices has been effected.
“No decision has been taken yet on imposing the fuel cess,” he said, adding that the Assembly has only passed a Bill empowering the government to levy such a charge, which will come into effect only after the Governor’s assent and official notification.
Sukhu said the proposed cess is aimed at supporting the welfare of orphaned children and widowed women. “The provision is meant to support orphaned children and widowed women,” he added, noting that fuel prices in the state would remain lower than neighbouring regions even if the cess is implemented.
The developments come amid continued political sparring over taxation policies, with the government maintaining that any final decision will be taken after due consideration by the cabinet.
