The Punjab government is considering imposing a reciprocal entry tax on vehicles registered in Himachal Pradesh entering the state, Finance Minister Harpal Singh Cheema said during the state assembly session. The proposal comes after the neighboring hill state increased entry charges for vehicles coming from other states.
Himachal’s Entry Tax Hike Sparks Debate
The discussion in the Punjab Assembly followed a recent decision by the Himachal Pradesh government to significantly raise entry fees for vehicles registered outside the state. Under the revised rates, the entry charge for private cars and light motor vehicles will increase from ₹70 to ₹170 starting April 1, 2026.