Entry tax reduced in Himachal, fixed at ₹100

April 1, 2026

The Himachal Pradesh government has rolled back the increased entry tax on vehicles coming from outside states and reduced the rates. The entry fee for all passenger vehicles up to 12 seats has been reduced from ₹130-₹170 to ₹100.

This decision follows protests in neighboring states. However, no changes have been made to the tax on larger vehicles.

Relief for border residents
The government has provided significant relief to residents living within a 5-kilometer radius of the toll barrier. Those living in the border areas of neighboring states, including Punjab, Haryana, and Chandigarh, will be issued concessional passes.

Additionally, commercial taxis registered in Himachal Pradesh and located in the border areas have also been exempted from entry tax.

Decision reversed after protests
A month ago, the government increased the entry fee for jeeps, cars, and light motor vehicles from ₹70 to ₹170, and for 6-12 seater vehicles from ₹110 to ₹130.

Following this, protests intensified in Punjab and Haryana. People threatened to close entry points and threatened to impose retaliatory taxes, forcing the government to reverse its decision.

Impact on tourism and trade
The increased tax was making travel expensive for people in border areas, which was feared to impact trade and tourism.

Now, the tax reduction has brought relief to tourists, businessmen, and locals. The government expects to earn approximately ₹228 crore from the entry tax, which will be spent on road and transportation infrastructure.