Punjab-Himachal Tax Tiff: A Brewing Interstate Conflict
Punjab Chief Minister Bhagwant Mann criticized the Himachal Pradesh Congress government for imposing an entry tax on out-of-state vehicles and hinted at a reciprocal tax. Protests erupted at the Punjab-Himachal border demanding a rollback. Himachal offered concessions, but tensions remain high over interstate taxation policies.
- Country:
- India
In a fierce address, Punjab Chief Minister Bhagwant Mann lambasted the Himachal Pradesh government for its controversial entry tax on vehicles crossing state lines. Mann's comments came after Himachal announced a reduction in tax following public outcry, lowering the rate from Rs 130 to Rs 100 for light vehicles.
The decision has sparked protests at the Punjab-Himachal border, with locals decrying the tax as unconstitutional. Demonstrators, including taxi operators and farmers, demanded a complete repeal, asserting that taxing vehicles from other states violates constitutional rights.
In response, the Himachal government offered concessional passes for residents near toll barriers. However, tensions persist, with the Punjab government considering a reciprocal tax, citing fiscal disagreements and increased financial strain on travelers.
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