Himachal Entry Tax Faces Legal Challenge as Protesters Threaten Border Blockades
Himachal Entry Tax Dispute Escalates with Border Blockade Threat

Himachal Pradesh Entry Tax Sparks Legal Battle and Protest Threats

The Sangharsh Committee, a coalition of protesting unions, has launched a scathing attack on the Sukhvinder Singh Sukhu-led Himachal Pradesh government, accusing it of deliberately misleading the state's high court regarding the legal foundation of entry tolls collected at state borders. The committee asserts that the government's affidavit in an ongoing case is "legally untenable" and evades core legal questions.

Escalation to Border Blockades Threatened

During a press conference held in Nangal, committee leaders issued a stern warning: if the Himachal Pradesh government fails to withdraw the controversial entry tax by the end of April 2026, they will escalate their agitation into full-scale border blockades starting May 1, 2026. This move aims to intensify pressure on the state administration.

Central Legal Challenge and Alleged Violations

The dispute centers on a Public Interest Litigation (PIL) filed by Nangal-based advocate Uttansh Monga, challenging the legal basis of the entry tax under the Himachal Pradesh Tolls Act, 1975. The committee argues that the levy is being collected on National Highways, where the state allegedly lacks authority, constituting a violation of central road statutes.

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The committee alleges that the government's court reply avoids addressing the critical issue of whether two separate tolls—one by the National Highways Authority of India under central law and another by the state under its 1975 Act—can legally apply on the same highway. Instead, the government's response reportedly relies on broad claims of state authority and revenue necessity, which Monga describes as evasion rather than a substantive legal defense.

Substantial Revenue Figures Revealed

Right to Information (RTI) applications filed by advocate Monga have uncovered significant financial details. Certified replies from the public information officer of Himachal Pradesh's department of state taxes and excise reveal that toll barriers across the state collected over Rs 171 crore in the current financial year alone (April 2025 to January 2026).

For the financial year 2024-25, total collections amounted to Rs 1,54,16,09,001, with a pending balance of Rs 3,20,000 still unpaid by the toll lessee at the Kuddu barrier in Shimla district. A district-wise breakdown shows:

  • Shimla's Kuddu barrier: Rs 41.80 lakh
  • Mehatpur and Gagret barriers in Una district (clubbed): Rs 28.20 crore
  • Baddi and Dherowal in BBN Baddi: over Rs 43 crore

Punjab's Potential Reciprocal Action

Punjab Morcha convenor Gaurav Rana disclosed that the committee has held direct discussions with Punjab Transport Minister Harpal Singh Cheema, facilitated by Minister Harjot Singh Bains, regarding imposing a reciprocal tax on Himachal Pradesh-registered vehicles. The committee claims Punjab possesses a strong legal advisory panel and administrative machinery to draft and implement such a tax promptly.

Leaders warned that continued inaction by the Punjab government would lead the movement to hold elected representatives in border constituencies—Ropar, Mohali, and Pathankot districts—accountable, potentially influencing future electoral outcomes.

Allegations of Unofficial Collections

Taxi union leaders have raised additional concerns, alleging unofficial collections ranging from Rs 300 to Rs 800 per vehicle at entry and exit points, which they claim violate All India Tourist Permit regulations. They have urged the Punjab government to impose mirror charges on Himachal-registered vehicles and to direct border enforcement agencies to document each instance of unauthorized collection.

Broader Campaign and Economic Concerns

The Sangharsh Committee has appealed to farmer unions and residents of Himachal's border districts to join their campaign, arguing that the toll harms economic integration between Himachal Pradesh and Punjab. They emphasize that if the Punjab government delays a reciprocal levy, the agitation will increasingly focus on targeting the constituencies of border district ministers and MLAs to seek public accountability.

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Efforts to reach Yunus, the commissioner of state taxes and excise for Himachal Pradesh, for comment were unsuccessful. The situation remains tense as legal proceedings continue and protest deadlines loom.