Himachal Pradesh to Drastically Cut Special Road Tax, Making Travel More Affordable

In a move aimed at promoting tourism and alleviating financial burdens on travelers, Himachal Pradesh has taken a significant step by slashing the special road tax (SRT) imposed on commercial vehicles. The reduced tax rates, which have been welcomed by both the local community and visitors, are expected to facilitate more accessible travel experiences throughout the region.

Transport Secretary R. D. Nazim confirmed the revised tax structure, highlighting substantial reductions in the special road tax. Under the updated regulations, vehicles categorized as 13 to 22 seaters will now incur a daily tax of just ?500, a substantial decrease from the previous ?3,000. Moreover, these vehicles will have the option to pay ?1,000 for a 3-day pass or ?2,000 for a week, providing flexibility for travelers.

For taxis carrying five or fewer passengers, the daily tax has been set at ?200. Vehicles accommodating more than five but fewer than ten passengers will be subject to a ?500 daily tax, while those carrying 10 to 22 passengers will pay ?750 per day. Larger vehicles capable of carrying 23 or more passengers will be subject to a daily tax of ?1,500. Furthermore, the government has standardized the annual tax for commercial vehicles entering industrial areas in Himachal, such as Baddi and Nalagarh, at ?3,500.

This substantial reduction in road tax comes as the state government seeks to stimulate tourism and bolster the local economy. Previously, commercial vehicles from other states were burdened with high daily taxes, ranging from ?3,000 to ?6,000. The revised rates, now set at ?1,500, are expected to attract more travelers to the picturesque mountains of Himachal Pradesh.

However, the tax issue has not been without its controversies. The Chandigarh-Punjab Taxi Operator Union has expressed its disapproval and even initiated a boycott in Himachal. The Chandigarh-Punjab Azad Taxi Operators Union has also issued warnings of potential border closures in protest.
Notably, The imposition of the special road tax had posed challenges to the tourism industry and deterred potential visitors from exploring the natural beauty of Himachal. Recognizing the adverse impact on the state’s revenue and local businesses, hotel owners and taxi unions have engaged with the Chief Minister to address their concerns. As a result, the government is actively working to rationalize the tax structure, taking into account the needs of all stakeholders and aiming to strike a balance between revenue generation and promoting tourism in the region.