Road tax imposed on commercial vehicles entering HP slashed up to 70%

The Himachal Pradesh government has reduced the special road tax (SRT) imposed on the entry of commercial vehicles registered outside the state has been reduced by 6070 per cent, officials said on Tuesday.

According to officials a notification in this regard is likely to be issued later in the day.

The decision has come as a relief to the tourism industry in the state which had earlier said that the tax on tourist vehicles has made group tours to Himachal unviable for the tour operators and as a result the occupancy levels in hotels have declined.

A tax of Rs 3,000 to Rs 6,000 per day varying on the seating capacity was imposed from September 1, 2023.

President Federation of Himachal hotels and Restaurant Associations (FOHHRA) Gajender Thakur had earlier said that levying taxes on entrance of commercial vehicles carrying tourists in the state at this point of time when the tourism industry has suffered heavy damage due to the recent monsoon season will further crumble the tourism sector.

Chief Minister Sukhvinder Singh Sukhu on October 19, stated that the state government would reduce the SRT and other taxes levied on entry of commercial vehicles registered outside the state.

Now, vehicles with a seating capacity between five and 10 will be charged Rs 500 per day, 10-22 seating capacity Rs 750 per day and over 23 or more persons Rs 1,500 per day.

Taxis with seating capacity of below five seats would now pay Rs 200 per day.

The SRT for contract carriage vehicles registered in other states under an All India Tourist Permit (AITP) has been slashed from Rs 3,000 to Rs 500 per day for vehicles with seating capacity between 13-22.

The SRT for commercial vehicles entering the industrial areas of Baddi, Nalagarh and Barotiwala has also been rationalized and procedures have been put to tax commercial vehicles entering the industrial areas which would generate an annual revenue of Rs 8 to 10 crore, officials added.