Himachal Pradesh Govt’s Entry Tax Sparks Opposition from Punjab Taxi Operators

The decision of the Himachal Pradesh government to impose revised entry taxes on taxis and tourist buses from other states has sparked discontent among travel agents, particularly during the festive season, reported Hindustan Times. Following travel agents in Gujarat, West Bengal, and Maharashtra boycotting Himachal, taxi operators from Chandigarh and Punjab have also issued warnings of boycotting the state due to the newly introduced taxes.

Previously, the entry taxes were applicable to stage carriage vehicles without an all-India temporary permit. However, the state government has now mandated that tourist buses, regardless of whether they possess an all-India permit, must pay between ₹3,000 and ₹6,000 for vehicles with 13 to 32 seats. These taxes were initiated on September 1.

Taxis from Chandigarh and Punjab are the primary mode of transportation to the state, and this move is poised to significantly impact the tourism industry. Sharanjit Kalsi, President of Chandigarh-Punjab’s Azad Taxi Union, expressed the body’s dissatisfaction, mentioning that they have halted bookings for Himachal and are even cancelling previously accepted bookings.

Also read: Central Government Directs States/UTs not to Levy Border Tax for Tourist Vehicles having Valid Permits under All India Tourist Vehicles (Permit) Rules, 2023

Recently, the Supreme Court bench of Justice Surya Kant and Justice Dipankar Datta has granted interim relief to the petitioner by ruling not to levy border tax on the vehicles owned by the petitioners for which a valid All India Tourist Bus permit has been granted.

The bench restrained the states of Kerala, Tamil Nadu and Karnataka from levying border tax on the petitioner’s vehicles. Also instructed to tag the other writ petition of Muthyala Sunil Kumar having similar facts.

The border tax is levied in the form of passenger tax/border tax/check post tax etc.from the tourist vehicles plying under All India Tourist Vehicles (Permit) Rules, 2023. The Central Government has noticed that some states/UTs and in motive of promoting tourism, has directed the such states/UTs not to levy the border tax.

Read More: SC Grants Interim Relief: Restriction on Border Tax imposed by Tamil Nadu, Kerala, and Karnataka for Petitioner’s bus with valid All India Tourist Bus Permit

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