Shimla: Travel to the mountain state of Himachal Pradesh is set to become significantly more expensive this spring as the state government implements a substantial hike in entry fees for vehicles registered outside the state.

Starting April 1, 2026, the Himachal Pradesh State Taxes and Excise Department will enforce a new toll policy aimed at bolstering the finances of the cash-strapped administration. The revised rates, notified under the Himachal Pradesh Toll Act of 1975, will see charges for various vehicle categories increase by as much as 140 per cent.

Revised tariff structure

The new toll regime introduces steep increases across all major vehicle classes, primarily targeting tourists and commercial logistics providers. For the most common category, private cars, SUVs, jeeps, and light motor vehicles, the entry fee will jump from the current Rs 70 to Rs 170 for a 24-hour period. Passenger vehicles with a seating capacity of 12+1 will also see rates rise to Rs 170 from the previous Rs 110.

Commercial and heavy-duty transport will face the highest financial burden. Mini-buses (32-seaters) will now pay Rs 320 instead of Rs 180, while the fee for commercial buses has nearly doubled, moving from Rs 320 to Rs 600. Heavy construction machinery and earth-moving equipment will be charged Rs 800, up from Rs 570, and oversized vehicles with seven or more axles will pay a maximum fee of Rs 900.

Modernisation and enforcement

In tandem with the price hike, the state is moving toward a more digitised and transparent collection system. The government has made FASTag mandatory at all 55 toll barriers across the state to reduce congestion at entry points. To mitigate traffic snarls during peak tourist seasons, multi-lane free-flow barriers are being established at high-traffic entry points, including Parwanoo and Tipra bypass in Solan district, and Garamaura in Bilaspur district. The rights to collect tolls are now being leased through a secure online e-auction process, with district-level committees chaired by deputy commissioners overseeing the operations.

Impact and revenue goals

The state government expects the revised policy to generate approximately Rs 185 crore in the 2026-27 financial year, a significant increase from the roughly Rs 151 crore earned in previous cycles. Officials stated the revenue is essential to offset the loss of central grants, specifically the discontinued Revenue Deficit Grant (RDG), and to fund ongoing road maintenance and infrastructure upgrades.

However, the move has drawn sharp criticism from the tourism sector and neighbouring border residents. Transport associations in Punjab and Haryana have voiced concerns that the hike will deter budget travellers and increase the cost of essential goods transported into the hills.