In a last-minute reversal just hours before the new rates were to kick in at midnight on March 31, the Himachal Pradesh government, led by Chief Minister Sukhvinder Singh Sukhu, announced a partial rollback and rationalisation of entry fees for vehicles registered outside the state.The move came amidst sustained pressure from transporters, farmers, and political leaders in neighbouring Punjab and Haryana, where protests had escalated along the borders. Here is what to know.The chief minister announced revisions during the ongoing budget session in the Himachal Vidhan Sabha. While there is reportedly some variation in how the rollback was framed, the core adjustment for lighter passenger vehicles is as follows:Five-seater and 6-12 seater passenger vehicles: The government has rationalised the rates. Some accounts describe a uniform entry fee of Rs 100 for non-HP passenger vehicles (up to 12+1 capacity). Other reports note that the full hike was withdrawn or partially rolled back, with five-seaters potentially staying closer to the earlier Rs 70 and 6-12 seaters around Rs 110, though a Rs 100 uniform rate has been widely cited in the final adjustments.Private cars/LMVs: The steep jump to Rs 170 appears moderated, though exact implementation at different barriers may still vary pending the final notification.Also Read | West Asia war: Why June quarter inflation is forecast to breach target amid weakening growth impetus, rupeeCommercial and heavy vehicles: These remain largely untouched by the rollback, facing the steepest increases (buses up to Rs 600, heavy goods vehicles up to Rs 900).The government has introduced a Special Rebate Scheme (5-km rebate) to ease the burden on border residents, applicable to people living within 5 km of the Himachal border in Punjab and Haryana. They can apply for special entry passes, which must be vetted and signed by their local Sub-Divisional Magistrate (SDM) or Tehsildar. A “minimum fee” will apply, though the exact amount is yet to be detailed in the official notification.And what was the original proposal?Story continues below this adUnder revisions notified earlier under the Himachal Pradesh Tolls Act, 1975, the state had significantly hiked entry fees (often referred to as toll or entry tax) for non-Himachal vehicles, effective April 1, 2026. These fees are collected at toll barriers and apply in addition to any national highway tolls on overlapping routes.The key proposed hikes included:Private cars, jeeps, vans, and light motor vehicles (LMVs): From around Rs 70 to Rs 170.6- to 12-seater (or up to 12+1) passenger vehicles: From Rs 110 to Rs 130 (or up to Rs 170 in some classifications).Commercial buses: Up to Rs 600.Heavy goods vehicles/large goods carriers: Up to Rs 900 (from Rs 720).Other categories, such as construction machinery and tractors, also saw increases.Himachal-registered vehicles remain exempt.Rationale behind the proposalThe state is facing a severe fiscal crunch and has reported a modest revenue from toll barriers, ex: Rs 171.48 crore from 11 barriers in 11 months in one reported period. The government sees the unified tax framework as essential to bolster its treasury, while defending the policy as a necessary update rather than a drastic new burden.The changes were part of a broader policy shift initiated in December 2023 that replaced older passenger and goods taxes with a unified framework, offering some concessions for electric vehicles.Story continues below this adAlso Read | What FCRA Amendment Bill 2026 proposes, why it has sparked a row in KeralaHowever, critics in Punjab have characterised the proposal as a desperate revenue measure by a cash-strapped administration. Protest leaders, including Gaurav Rana of the Punjab Morcha, argue the structure is flawed, saying that vehicles on routes like Kiratpur Sahib–Manali already pay kilometre-based tolls via automated systems (e.g., FASTag). Adding a state “entry tax” amounts to double taxation on the same stretch.Moreover, the border districts of Rupnagar and Mohali share deep family, business, and cultural links with Himachal. Even the earlier Rs 70 fee was viewed as a hurdle for daily commuters; the hikes threatened livelihoods in transport and tourism.Why was the proposal rolled back?The decision was driven by escalating political and public pressure as the midnight deadline loomed.Chief among these were the border protests by transporters, “Punjab Morcha” activists, farmer unions (including Kirti Kisan Union), and others. They threatened to block all 33 entry points into the state, including Garha Morh, Barotiwala, and entry points in Rupnagar, Hoshiarpur, and Pathankot districts.Story continues below this adAuthorities reportedly stopped a tractor-trolley carrying pilgrims to Manikaran Sahib, demanding a high permit fee (around Rs 15,000 in some accounts), which was seen as “extortionary.”Political pressure also factored in, with CM Sukhu facing opposition within the party, as well as protests by the opposition BJP inside and outside the Himachal Assembly.The chief minister assured Congress leaders in Punjab that the interests of Punjabi residents would be protected. Punjab’s Finance Minister Harpal Cheema had criticised the move in the Punjab Vidhan Sabha on March 11, calling Himachal “almost bankrupt” and citing issues like frozen dearness allowance (DA), halted recruitments, and withdrawal of free power and BPL rations. Punjab is considering a reciprocal tax on Himachal-registered vehicles and has sought legal opinion from the Advocate General.