Chandigarh, April 1 Punjab Chief Minister Bhagwant Mann on Wednesday criticized the Himachal Pradesh Congress government over the entry tax on vehicles from outside the state and warned of reciprocal taxes.
His remarks came in the wake of Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu's announcement on Tuesday of a reduction in the hike in entry tax for small passenger vehicles from Rs 130 to Rs 100, following opposition to the decision.
On Wednesday, protests erupted at the Punjab-Himachal border, with locals, taxi operators, and farmer groups demanding the withdrawal of the entry tax.
The protesters demanded a complete rollback of the entry tax, arguing that a state cannot tax other states.
Speaking to reporters, Mann said his government had closed toll plazas at several locations in Punjab, and this move would also benefit vehicles registered in Himachal Pradesh.
"We are saving their money, but they are imposing taxes on our (Punjab) vehicles. We will wait and see. Otherwise, we also know how to impose taxes," the chief minister said.
Mann also criticized the Punjab Congress leaders for their silence on the matter.
Meanwhile, the Himachal government announced concessional passes for all residents living within five kilometers of any toll barrier.
On February 16, a notification was issued announcing an increase in tax on small passenger vehicles from Rs 70 to Rs 170. After a backlash, the tax was fixed at Rs 130.
At a protest at the Dherowal entry barrier near the Punjab-Himachal border, AAP MLA from Rupnagar, Dinesh Chadha, called the entry tax "illegal."
Chadha questioned the interstate tax, saying that the Constitution allows freedom of movement across the country.
Last month, during the Budget Session of the Punjab Vidhan Sabha, Finance Minister Harpal Singh Cheema said that the state would consider the possibility of imposing a counter tax on vehicles registered in Himachal Pradesh.
Cheema criticized the Congress-led Himachal Pradesh government for making an "exorbitant" increase in the entry tax on vehicles from other states and asserted that the Sukhu government did so as it was on the verge of being "bankrupt".