Himachal Pradesh has increased entry taxes, sparking outrage in Punjab’s border areas. The new rates, effective April 1, 2026, hike taxes from Rs 70 to Rs 100 for locals and Rs 70 to Rs 170 for five-seater vehicles from other states. Commercial vehicles face increases of up to Rs 800.Paramjit Singh Pamma, a municipal councillor from Nangal and former president of District Bar Association, termed the increase as illegal and unjustified. The Himachal Government was the only state in the country that was imposing entry tax on vehicles registered in other states. Now, the state government has decided to increase toll by about 30 per cent for people residing on border areas and almost 150 per cent for people coming from other areas. The people of Punjab, living in the border areas of Himachal Pradesh, who commute daily to the state for work or business would have to shell around Rs 4,000 per month, he said.The Nangal council passed a unanimous resolution in June 2025 to impose a reciprocal tax on Himachal-registered vehicles, which could have deterred Himachal’s tax hike. However, the Punjab Government hasn’t acted on it, says Pamma, urging them to clarify their stance.Advocate Uttansh Monga has moved the Himachal High Court, arguing that the state’s entry tax on national highways is unconstitutional and amounts to double taxation. “People are being forced to pay both Himachal’s entry tax and NHAI toll,” he said, citing RTI data that Himachal collects Rs 150 crore annually from other states’ vehicles.Ropar district residents plan to protest and meet their MLAs over the issue. Sources say Himachal’s tax hike aims to compensate for lost Revenue Deficit Grant (RDG) funds but may harm local business and GST collection.