CM Sukhu Rolls Back Entry Tax Hike, Moves to Defuse Punjab Border Tensions

Facing strong backlash over the increased entry tax on out-of-state vehicles, Sukhwinder Singh Sukhu has announced a rollback of the hike for private vehicles.

The Chief Minister also proposed issuing concessional passes for daily commuters from Punjab and for those living within a five-kilometre radius of the border villages in both states.

Sukhu made the announcement in the state Assembly after the opposition Bharatiya Janata Party staged protests inside and outside the House, highlighting rising tensions at the borders, highlighting the tension building up at the borders, where transporters and taxi operators had threatened to block the movement of all types of vehicles to the hill state from March 31 night.

“We have decided to revise the entry fee for both five-seater and six- to 12-seater four-wheelers to ₹100, instead of the proposed ₹130,” Sukhu said.

The chief minister added confusion was created over the fee hike and revisions for private and commercial vehicles ordered by the government.

Earlier, the fee for five-seaters was raised from ₹70 to ₹130, while vehicles with up to 12 seats were also to pay ₹130, up from ₹110. The revised decision brings both categories to a uniform ₹100.

The government will issue special passes to residents living within a 5 km radius of the state barrier to ensure hassle-free movement.

The rollback marks a significant climbdown for the government, which had earlier sought to streamline transit by merging multiple charges with FASTag.

Sukhu also reached out to Punjab Congress leaders, including  Amrinder Singh Raja Warring, Punjab Congress president, and Partap Singh Bajwa, who were informed about the decision and sought their help to ease tension developing at the interstate borders due to the steep hike.

He said he had also spoken to Bhagwant Mann and briefed him on the decision.

Meanwhile, former Manali Hoteliers’ Association president Anup Thakur called it a “wise and timely step,” noting that prolonging the dispute could have affected the region’s tourism-dependent economy. He said early intervention helped prevent further escalation of tensions between the neighbouring states and safeguarded local livelihoods.

Roshan Thakur, current president of the association, said the rollback brought relief, though the initial announcement had already caused some damage. “The move has helped avert further harm, but the effects of the earlier announcement were already evident,” he said.

The opposition BJP, led by Leader of Opposition Jairam Thakur, had been at the forefront of protests, warning that the hike could strain relations between the two states and hurt livelihoods in border areas.

Earlier, Punjab Finance Minister Harpal Singh Cheema had warned of imposing a reciprocal entry fee on vehicles entering Punjab from Himachal Pradesh.