Controversy sparks in Manali over ‘illegal’ parking fee, green tax diversion

Manali’s long-standing issue of parking management and tourist vehicle charges has once again come under scrutiny after Punjab-based advocate and RTI activist Kamal Anand alleged that the authorities are illegally charging parking fee from tourists despite an existing government notification exempting such charges.

Anand has cited a notification issued by the Department of Tourism and Civil Aviation, Himachal Pradesh, on May 29, 2004, following directions of the Himachal Pradesh High Court in a public interest litigation. The notification authorised the levy of a one-time tourism development fee on vehicles entering Manali town from outside Himachal Pradesh. At the time, the fee ranged from Rs 100 for two-wheelers to Rs 500 for buses.

Significantly, the notification clearly stated that the fee would be a “one-time levy” valid for a week and that vehicles entering Manali after paying the entry charge would not be subjected to any additional fee, including parking charges, by the government or its authorised agencies. Anand has alleged that despite this provision, tourists continue to be charged separate parking fee at various locations in and around Manali, amounting to a case of double taxation.

According to him, the practice has continued for years, placing an unnecessary financial burden on visitors and raising questions about compliance with the original government and court orders. He has sought clarification from the authorities regarding the legal basis for collecting parking fee from vehicles that have already paid the green entry tax.

For a few years, the parking charges were not collected in public parking lots. Later, the Manali Municipal Council outsourced its parking lots to contractors. Even National Highways Authority of India (NHAI) has outsourced its parking lots and authorised contractors are allegedly charging arbitrary and hefty fee.

The activist has also raised concerns over the utilisation of funds collected under the green tax mechanism. He alleged that revenue generated in the name of environmental conservation and tourism management was being diverted towards unauthorised expenditures, including decorative installations and selfie points. Such spending, he claimed, falls outside the objectives for which the tax was originally imposed and may violate the provisions governing the collection and use of the funds.

The allegations come at a time when the parking infrastructure and traffic congestion remain major challenges in Manali, particularly during peak tourist seasons. Over the years, several reports have highlighted inadequate parking facilities, growing vehicle pressure and demands for better traffic management in the hill resort.

The local authorities have consistently maintained that parking fee was essential for maintaining parking infrastructure and regulating vehicle movement. However, Anand has called for a transparent audit of the green tax collections and expenditures, as well as a review of the parking fee practice to ensure compliance with the existing legal provisions.

The matter is expected to spark fresh debate over tourism management, revenue collection and accountability in one of Himachal Pradesh’s busiest tourist destinations.