Shimla, March 12 -- A potential inter-state tax dispute appears to be brewing between Punjab and Himachal Pradesh after the Punjab government indicated it is examining the possibility of imposing a reciprocal entry tax on vehicles registered in Himachal Pradesh.
The development follows Himachal Pradesh's recent decision to significantly increase the entry fee for vehicles entering the hill state from outside. The revised rates have drawn criticism from leaders in neighbouring Punjab, where many residents frequently travel to Himachal Pradesh for tourism, business and daily work.
Punjab Finance Minister Harpal Singh Cheema recently informed the Punjab Assembly that the state government is studying whether a similar levy could be imposed on...