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Punjab to consider levying reciprocal entry tax on Himachal vehicles entering state: Cheema
The entry fee hike in Himachal Pradesh under the HP Tolls Act, 1975, will see all non-Himachal registered private cars and light motor vehicles jump from Rs 70 to Rs 170 with effect from April 1.
Government commercial vehicles face even steeper escalations, with buses and heavy goods carriers to be charged up to Rs 600 and Rs 900, respectively. (File Photo)
Punjab Finance Minister Harpal Cheema Wednesday told Vidhan Sabha that the state government will consider imposing a reciprocal tax on Himachal Pradesh vehicles entering the state and that legal opinion on the issue will be sought from all stake holders.
The matter came up during the Question Hour when Ropar MLA Dinesh Chadha asked if any such tax was under consideration especially after a steep hike in the entry tax imposed by Himachal Pradesh on vehicles entering the state from Punjab.
The entry fee hike in Himachal Pradesh under the HP Tolls Act, 1975, will see all non-Himachal registered private cars and light motor vehicles jump from Rs 70 to Rs 170 with effect from April 1. As per a notification by Himachal Pradesh government commercial vehicles face even steeper escalations, with buses and heavy goods carriers to be charged up to Rs 600 and Rs 900, respectively.
“Harjot Bains (education minister) was also telling me on this. Today, situation in Himachal is this that Dearness Allowance of government employees is frozen, new government recruitment has been stopped, free electricity units have been stopped and BPL ration cards have also been stopped. The Congress government in Himachal Pradesh is almost bankrupt. Which is why they have introduced a steep hike in entry tax,” said Cheema.
He said the Local Body Minister should get the matter of reciprocal tax studied and see if a tax has to be imposed on himachal vehicles. He added that Punjab has a great areas bordering Himachal and many relatives of Punjabis also live in Himachal due to which they have to often commute to that state.
The Ropar MLA Dinesh Chadha questioned that when Himachal Pradesh could pass a state act and imposed tax then why cannot Punjab also pass an act and impose tax on Himachal Pradesh vehicles.
Cheema replied to this question saying that Himachal is a hill state and they have special legislation. “I will ask the MLA to come and meet me and if this can be done we will definitely do it,” he said.
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At this point the Speaker, Kultar Singh Sandhwan, intervened. “You are a minister, even a sarpanch can impose tax on anyone,” he said.
Pressing his point, Dinesh Chadha said Himachal Pradesh government has not imposed the tax under any special provision for hill state. “Will the minister get opinion from Advocate General’s officer to impose tax,” he asked.
To this the finance minister replied, “We will get legal opinion. If it can be imposed we will do it”.
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