Himachal tourism industry unhappy over increased toll, says this will strain 'struggling' tourism industry

Shimla, Dharamshala, Manali (Himachal Pradesh) [India], March 4 (ANI): The tourism business operators in Himachal Pradesh have expressed strong dissatisfaction with the state government's decision to increase entry fees at various toll barriers under the excise policy.
The Himachal Pradesh Excise and Taxation Department has proposed to raise the entry fees for different vehicle categories under the toll policy for the financial year 2025-26. The revised rates, which will take effect on April 1, 2025, are expected to further 'strain' the already 'struggling tourism' industry.
Under the new toll structure, private four-seaters and commercial vehicles will pay Rs 10 more, while commercial and cargo vehicles will pay Rs 20 more. The revised fees will apply to all 55 toll barriers in the state.
According to the revised fare chart, private vehicles will now pay Rs 70 instead of Rs 60, and the heavy goods vehicles (HGVs) will be charged Rs 570, up from Rs 550.
The passenger vehicles with 6-12 seats will now pay Rs 110 instead of Rs 90, while the passenger vehicles with more than 12 seats will pay Rs 180, up from Rs 160.
The proposed decision has also made several tourists unhappy, who believe that it will be an extra burden on them.
Fazia Khan, a tourist from Dharamshala, said that many people are not financially capable, and the move will adversely impact tourism.
"India is a developing country and if there is only one rupee increase in something even then that creates a burden on our pockets so obviously the increase in toll fee will have an impact on tourism. Majority of people in our country are not financially capable. There may not be any effect on 10 percent population who are super rich so overall it will have an impact on us," the tourist told ANI.
Prince Soni, another tourist said, "It will not have a big impact on tourism but yes when they will pay extra or increased toll tax then that may feel negative about the government and it will have some or little impact on their pockets. I think government should utilise these funds to improve roads and drainage systems."
Notably, at least 55 toll barriers across the state require motorists, including those from other regions and HGVs, to pay entry fees as per the Himachal Pradesh Entry Tax Rules, 2012. The highest concentration of these toll barriers is in Una district (15), followed by Solan (13), Sirmaur (8), and others scattered across the state.
Five key entry points to major tourist destinations like Shimla and Manali include the Parwanoo barrier on the Kalka-Shimla National Highway (NH-5), which is the most frequently used route to Shimla.

Rising concern over the financial impact of the decision, Vasu, a tourism businessman based in Shimla, voiced his concern over emphasizing the financial burden it would place on tourism operators.
"We already have very little business, and this will further add to our losses. If we calculate on a per-day basis, five of our vehicles travel to Chandigarh daily. With the increased toll charges, we will incur a minimum loss of Rs 1,000 per day per trip. We request the government to roll back this decision and not implement the increased toll charges. Our business has already suffered losses. If toll expenses rise, we will have to bear even more losses," he said.
He further explained that the tourism industry in Himachal Pradesh has already suffered setbacks due to extreme weather conditions over the past year.
"After the snowfall this year and the heavy rains last year, we were trying to recover. However, if any additional taxes are imposed, it will result in further financial setbacks. Many of us are still struggling to revive our businesses," he added.

Ramesh Chander, another tourism entrepreneur and taxi operator from Shimla, echoed similar concerns, stressing that inflation has made it difficult for them to increase fares.
"If we send a few vehicles in a day, we currently pay Rs 500 in toll fees, but with the increased charges, this amount will double to Rs 1,000. However, we won't be able to raise our fares accordingly. This will cause financial losses. Business is already slow this season, and elections have further impacted it. If the commercial vehicle entry tax increases for out-of-state vehicles, it will have a severe impact on us. I operate multiple vehicles, and I am likely to face losses of around Rs 5,000," he said.
Highlighting the financial burden, he further added, "With reduced business, we still have to pay other taxes and bank loan instalments. If business remains slow and fares do not increase, we might be forced to shut down operations. In the worst-case scenario, banks might repossess our vehicles due to unpaid loan instalments. We hope the government does not implement these increased toll rates."
With the Himachal Pradesh tourism sector already grappling with lower tourist footfall, unpredictable weather, and economic slowdowns, business owners and vehicle operators are urging the state government to reconsider the toll hike.
Further, travel agent Gagan Awasthi, who is associated with the hotel industry, stated that the state government's decision to increase the toll tax will directly impact businesses in the hospitality sector.
"The state government is increasing the toll tax, which will have a direct impact on businessmen associated with the hotel industry, which will affect taxi operators, bus operators, Volvo bus operators and transport as well as tourists coming from outside states," said the taxi operator.
Another taxi operator, Rahul, Rajesh, and Kumar, said that the state government will increase the toll tax on April 1, which will directly impact the tourism business.
"The road traffic in Kullu Manali has not been fully restored since the last disaster, in such a situation, by increasing the toll tax by the government, it will have a direct impact on the taxi operator, bus operator and tourists coming from the country and abroad and the taxi operator will have to bear the most loss. He said that the government should not increase the toll tax in Himachal Pradesh at the moment so that the taxi operators as well as the general public could get relief. (ANI)