Tensions are set to escalate along the Punjab-Himachal Pradesh border as transporters and farmer groups have announced an indefinite blockade starting Saturday morning to protest the vehicle entry tax imposed by Himachal Pradesh. The protest is likely to disrupt traffic on the crucial Kiratpur Sahib-Manali National Highway.

Issuing a strong ultimatum, the protesting groups said that unless the Punjab government implements a reciprocal tax by Friday evening, or the Himachal Pradesh government exempts vehicles from bordering Punjab districts—Rupnagar, Mohali, Hoshiarpur and Pathankot—from the levy, the highway will be completely blocked from 9 am Saturday.

The agitation comes amid rising friction at nearly 33 entry points along the interstate border, where protesters allege “heavy and unjustified taxes” are being collected. The situation has led to frequent confrontations and tense scenes at toll plazas.

The cash-crunched Sukhvinder Singh Sukhu-led Himachal government hiked the entry tax for vehicles into the state from April 1, a decision widely criticised by bordering states.

Transporters and farmer groups in Punjab had called for an indefinite road block protest on Wednesday, but called it off following an assurance from Himachal Pradesh officials that talks would be held in 10 days.

Gaurav Rana, president of the social organisation Punjab Morcha, said that representatives of all protesting bodies have now decided to sort out this matter as soon as possible.

Earlier on Thursday, representatives of the agitating groups met Punjab minister Harjot Singh Bains in Sri Anandpur Sahib and pressed for immediate intervention. They demanded that the state either ensure withdrawal of the tax through dialogue with Himachal Pradesh or impose a matching levy to safeguard local transporters.

Responding to the concerns, Bains termed the entry tax “unjustified” and said the Punjab government is committed to protecting the state’s interests. He assured that a decision in Punjab’s favour would be taken soon.