Punjab-Himachal tax dispute intensifies as Nihang groups announce ‘Khalsa Tax’ move

A controversy over entry levies imposed in Himachal Pradesh’s border regions has taken a new turn, with Nihang Sikh organisations declaring that vehicles arriving from the hill state could face a symbolic “Khalsa Tax” from June 21 if their demands are not addressed.

The announcement follows weeks of protests by several groups, including farmers, transport operators and residents of border areas, who have been voicing opposition to taxes collected from vehicles entering parts of Himachal Pradesh. Protest leaders argue that the charges have created additional financial pressure on people who frequently travel between the two neighbouring states for business and daily activities.

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Nihang representatives said they had repeatedly raised the matter with authorities but were disappointed by the lack of a policy response. As a result, they have decided to escalate their agitation through what they describe as a symbolic campaign intended to draw public and governmental attention to the issue.

The dispute gained momentum earlier this month when various organisations staged demonstrations along major routes linking Punjab and Himachal Pradesh. Protesters alleged that the existing tax structure was adversely affecting local trade, transport services and residents living near the interstate boundary. During those demonstrations, organisers had warned that reciprocal action could be initiated if no relief was provided.

Religious leader Baba Achhar Singh Mahakal, who has been associated with the campaign, previously stated that the proposed “Khalsa Tax” should be viewed as a form of protest rather than a permanent arrangement. He maintained that the objective was to highlight the concerns of border communities and press for a review of the existing taxation policy.

According to organisers, the agitation will continue until the Himachal Pradesh government re-examines the levy system and takes steps to address concerns raised by affected groups. They have urged authorities to engage with stakeholders and find a mutually acceptable solution.

The issue has generated widespread discussion across the border districts of both states, particularly among transporters and business owners who depend on regular interstate movement. With the June 21 deadline approaching, attention is now centred on whether further negotiations can ease tensions and prevent the dispute from deepening.