Shimla: The Himachal Pradesh government is set to introduce FASTag-based entry tax collection in a phased manner, starting with six key toll barriers. The initiative aims to streamline tax payments, reduce waiting time, and improve revenue collection efficiency.

In the first phase, FASTag entry tax collection will be implemented at Garamaura in Bilaspur district, Parwanoo (Main) and Tipra Bypass (Parwanoo) in Solan district, Govindghat in Sirmaur district, Kandwal in Kangra district, Mehatpur in Una district, and Baddi in Solan district. A government spokesperson stated that all 55 toll barriers in the state will eventually adopt this system.

To ensure a smooth transition, the government has decided to auction-cum-tender the toll barriers for the financial year 2025-26, with an expected 7.5% increase in entry tax revenue compared to 2024-25. The successful toll lessees will be responsible for installing and operating the FASTag system at their own cost, including charges related to the Issuer Bank, NPCI, IHMCL, and the acquiring bank. They must complete the installation within 45 days or risk lease cancellation.

Toll lessees will also be required to provide receipts for commuters making to-and-fro trips within 24 hours. Overcharging beyond the approved rates will be strictly prohibited. The government has directed senior departmental officers to oversee timely implementation.

Currently, all Himachal Pradesh-registered vehicles, except heavy commercial vehicles, are exempted from entry tax. The FASTag software will be programmed to ensure that deductions are not made for exempted vehicles. Officials say the initiative will not only enhance travel convenience but also improve compliance and efficiency in tax collection across the state.