Shimla: The Himachal Pradesh government has proposed abolishing the composite fee currently levied on commercial and tourist vehicles entering the state from other states.
To implement the change, the government has proposed an amendment to the Himachal Pradesh Motor Vehicles Rules, 1999. A draft notification for the Himachal Pradesh Motor Vehicles (Amendment) Rules, 2026 has been issued, inviting objections and suggestions from the public within 30 days.
The proposed amendment provides for the complete omission of Rule 69-A from the existing rules. Once the amendment comes into force, commercial vehicles entering Himachal Pradesh with valid All India Permits will no longer have to pay the composite fee. The Special Road Tax (SRT), however, will continue to be applicable.
Composite fee currently applicable
Under the existing Rule 69-A, tourist vehicles holding All India Permits issued by the State Transport Authority of another state are required to pay a prescribed composite fee for operating in Himachal Pradesh.
The existing daily rates include:
- Luxury AC buses such as Volvo and Mercedes: ₹5,000
- Bus with more than 32 seats: ₹3,500
- 13–32-seater ordinary/deluxe bus: ₹2,500
- 9–12-seater vehicle: ₹500
- 7–8-seater vehicle: ₹300
- 4–6-seater vehicle: ₹200
The composite fee is currently collected by the Transport Department at entry points into the state, while an online payment facility is also available.
SRT to remain
At present, vehicles covered under the provision are required to pay the composite fee in addition to the Special Road Tax. With the proposed deletion of Rule 69-A, the composite fee component will be removed, while the SRT will continue to be collected from the concerned vehicles.
The move is expected to benefit a large number of commercial vehicles entering Himachal Pradesh every year. According to the information provided by the government, around 1 lakh to 1.5 lakh commercial vehicles enter the state annually.
Rule 69-A to be deleted
The draft notification has been issued by Omkar Sharma, Additional Chief Secretary (Transport). The proposed amendment has been framed under sub-section (2) of Section 96 and sub-section (1) of Section 212 of the Motor Vehicles Act, 1988.
The draft rules state that Rule 69-A of the Himachal Pradesh Motor Vehicles Rules, 1999, will be omitted.
The existing provision applies to tourist vehicles operating in Himachal Pradesh under All India Permits issued by another state’s State Transport Authority under Section 88(9) of the Motor Vehicles Act.
Rule 69-A also provides for an additional levy where a vehicle operates in the state without depositing the prescribed composite fee. Under the existing provision, the additional amount can be five times the fee otherwise payable.
The government has now invited objections and suggestions on the draft amendment within 30 days. After completion of the prescribed process, the amended rules are expected to come into effect, bringing the composite fee regime for such vehicles to an end.
