Protests in Punjab, Haryana Force Himachal’s Hand
For countless Indians, family vacations are an annual ritual, but one that often gets marred by long queues at highway toll booths. In Himachal Pradesh, the government’s decision to hike entry tax had added insult to injury, with many calling it a ‘tax on tourism’. But after widespread protests in Punjab and Haryana, the Himachal government has rolled back its decision, in a major relief to the tourism industry.
Chief Minister Sukhvinder Singh Sukhu’s government had hiked entry tax from Rs 35 to Rs 50 per vehicle in a bid to boost state revenue. However, the move was met with resistance from Punjab and Haryana, which share a border with Himachal. Protests erupted in both states, with opposition parties and traders’ bodies accusing the Himachal government of ‘taxing its own people’. Amidst the furore, the Himachal government has now decided to revert to the old rate, in a bid to maintain smooth relations with its neighbours.
While the decision has been welcomed by the tourism industry, it remains to be seen whether it will have a lasting impact on the state’s finances. As the government looks to diversify its revenue streams, many are left wondering if the move will be short-lived.