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Himachal toll tax hiked: Check new rates you will have to pay to enter hills from April 1
Himachal toll tax hiked: Check new rates you will have to pay to enter hills from April 1
A trip to Himachal Pradesh is about to become more expensive for visitors driving in from other states. The state government has sharply increased entry fees for vehicles, with revised rates coming into force from April 1 under the Himachal Pradesh Toll Act, 1975. The hike spans almost all categories of vehicles and is part of a wider push by the government to raise its own revenues amid mounting financial pressure.
Under the new structure, entry fees have been revised upward across most vehicle types. Private cars, jeeps, vans and light motor vehicles will now pay Rs 170 instead of Rs 70. For 12+1 seater passenger vehicles, the charge has been increased from Rs 110 to Rs 170.
Mini buses (32-seater) will now be charged Rs 320, up from Rs 180, while commercial buses will pay Rs 600 compared to the earlier Rs 320. Construction machinery entering the state will be charged Rs 800 instead of Rs 570. Entry fees for large goods vehicles have gone up from Rs 720 to Rs 900, while tractors will now pay Rs 100 instead of Rs 70. The rate for double-axle bus-trucks remains unchanged at Rs 570. Local Himachal vehicles continue to be exempt from the entry fee.
The revised rates will apply at key entry barriers across the state, including Parwanoo and Baddi in Solan district, Mahatpur in Una district, Kandwal in Kangra district, Garamaura in Bilaspur district and Govindghat in Sirmaur district.
The increase in entry fees comes as Himachal Pradesh faces tighter finances after the discontinuation of the Revenue Deficit Grant (RDG) recommended by the 16th Finance Commission. The state government is now focusing on internal resource mobilisation to maintain spending.
Officials say toll collections, entry fees, excise income from liquor vends, mining revenues, transport taxes and power sector earnings together form the backbone of the state’s limited revenue base.
“Our income sources are limited excise, mining revenues of Rs 300-350 crore, transport and power projects. With GST compensation already gone and RDG now discontinued, the state faces financial stress,” Deputy Chief Minister Mukesh Agnihotri said.
Alongside higher entry fees, the government is overhauling how tolls are collected. Under the Toll Policy 2026–27, barriers will be leased through a transparent e-auction system with fixed reserve prices.
Electronic toll collection will be mandatory, with FASTag systems, CCTV monitoring and digital tracking of collections introduced in phases. Contractors operating toll barriers will be required to install FASTag-enabled infrastructure within 15 days of allotment.
The government says the changes are meant to streamline traffic, reduce congestion and ensure steady monthly revenue flows into the state exchequer.
“The state is generating its taxes through transparent methods. We have opted for reforms in excise, tolls and other sectors to ensure accountability and improve revenue collection,” Agnihotri said.
The revenue push is not limited to tolls. The state is continuing auction-based allotment of liquor vends with rationalised reserve prices based on past sales and consumption trends.
Digital monitoring of stock movement, stricter enforcement and transparent bidding are expected to boost licence fees, excise duty and VAT collections in the coming financial year.
Tourism stakeholders have raised concerns that higher entry fees could increase travel costs and affect visitor inflow, especially for road travellers who form a large chunk of Himachal’s tourist base.
However, the government maintains that better infrastructure, smoother toll systems and improved services will balance out the impact of higher charges.
Flagging the financial pressure on hill states, Agnihotri has urged the Centre for support.
“We appeal to the Prime Minister to consider the special circumstances of hill states like Himachal Pradesh and ensure support from the Consolidated Fund of India,” he said.
With RDG withdrawal reshaping the state’s finances, Himachal Pradesh is betting on tighter tax systems, higher user charges and transparent auctions to shore up revenues, even if it means that a simple road trip to the hills now costs more than before.
Source: Msn.com
Source: OfficeNewz
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