India, March 12 -- In a move that could escalate inter-state tensions, the Aam Aadmi Party (AAP) government in Punjab is exploring the possibility of levying an entry tax on vehicles registered in Himachal Pradesh.

Finance and excise and taxation minister Harpal Singh Cheema informed the Punjab assembly on Wednesday that Punjabis considering this reciprocal measure following the Sukhvinder Singh Sukhu-led Congress government's decision to charge vehicles entering Himachal from April 1, 2026.

Cheema also slammed the Sukhu government for making an "exorbitant" increase in the entry tax on vehicles from other states and asserted that it did so because it was on the verge of being "bankrupt".

Cheema was replying to a question from Rupnagar...