India, March 11 -- In a move that could escalate inter-state tensions, the Aam Aadmi Party (AAP) government in Punjab is exploring the possibility of levying entry tax on vehicles registered in Himachal Pradesh.

State finance and excise and taxation minister Harpal Cheema informed the Punjab assembly on Wednesday that the state is considering this reciprocal measure following the Sukhvinder Singh Sukhu-led Congress government's decision to hike the entry tax on all non-Himachal registered vehicles entering the state from April 1, 2026.

Responding to a query raised by Rupnagar MLA Dinesh Kumar Chadha, Cheema said that the hill state currently charges all non-Himachal registered vehicles a minimum of Rs.70.

Describing the Congress govern...