Tax on tourist, commercial vehicles entering Himachal slashed up to 70%

Tribune News Service

Subhash Rajta

Shimla, October 30

The Himachal Pradesh Government has decided to reduce the Special Road Tax (SRT) on tourist/commercial vehicles entering the state by up to 70 per cent.

Ever since this new tax came into effect on September 1, the state’s tourism industry had been up in arms against it, blaming it for keeping tour operators from other states away from Himachal.

“These vehicles were not paying any tax to the government. Even at the rationalised rates, the government will have some earning,” said RD Nazeem, Principal Secretary, Transport. “Also, the tourism sector will also get a boost after this rationalisation.

The SRT for contract carriage vehicles registered in other states under an All India Tourist Permit (AITP) has been reduced significantly. Operators of 13 to 22-seater vehicles will now be charged only Rs 500 per day, down from Rs 3,000 per day. The operators also have the option of paying Rs 1,000 for three days and Rs 2,000 for a week. For vehicles with 23 or more seats in this category, the revised tax is Rs 1,500 for one day, Rs 3,000 for three days and Rs 6,000 for a week.

The SRT for contract carriage vehicles not covered under AITP rules, or any similar permit, has also been reduced. For taxis with seating capacity of under five, the new SRT is Rs 200 per day. Vehicles with a seating capacity between five and 10 will be charged Rs 500 per day; those with 10-22 seating capacity will be charged Rs 750 daily; and operators of vehicles with seating for 23 or more persons will have to pay Rs 1,500 per day.

The SRT for commercial vehicles entering the industrial areas of Baddi, Nalagarh, etc, has also been rationalised. “The tax for these vehicles has been fixed at Rs 3,500 per seat, per annum,” an official said.

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