Nangal MC proposes ‘reciprocal’ entry tax on Himachal vehicles

The Nangal Municipal Council has passed a resolution to impose entry tax on vehicles bearing Himachal Pradesh registration numbers. The resolution was passed with a voice vote by all 16 MC members present in the House on Monday evening.

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Nangal Municipal Council member Paramjit Singh Pamma, who brought the resolution, termed it as “reciprocal tax” to counter the tax being imposed on city residents by the HP Government.

He said Nangal city was located along the border with Himachal. Every day, Nangal residents go to Himachal in connection with their job, for meeting relatives or other chores. They have to pay tax for entering Himachal—Rs 70 for a five-seater vehicle and Rs 110 for every seven-seater vehicle.

It was an illegal tax being imposed by the Himachal Government on city residents. The road leading to Himachal from Mehatpur was a national highway. As per the policy of the National Highways Authority of India (NHAI), no toll tax can be imposed on people residing within 5-km radius of a toll plaza. However, the Himachal Government was levying a tax on Nangal residents, he said.

He said Himachal was the only state in the country that charged entry tax on vehicles registered in other states. Earlier, Jammu and Kashmir also used to levy entry tax on vehicles registered in other states. However, that tax was abolished after the abrogation of Article 370.

“After the Nangal MC, we will approach civic bodies of border towns of Anandpur Sahib, Kiratpur Sahib and Bharatgarh to impose entry tax on vehicles registered in Himachal,” he said.

Sources said the resolution passed by the Nangal MC would be sent to the Director, Local Bodies, Punjab, for approval. Only after that approval, the Nangal MC would be able to impose entry tax on vehicles registered in Himachal Pradesh.

Paramjit Singh said the Nangal MC would charge the same amount of tax on vehicles registered in Himachal as was being done by that state in case of vehicles registered in Punjab. “We will put up toll nakas in Nangal town and the amount so collected will be used for undertaking development works in the city,” he added.