Meeting a long-pending demand of local people and traders, the Jammu and Kashmir administration on Monday abolished the road tariff at Lakhanpur toll plaza on Jammu-Pathankot Highway, from where it used to earn over Rs 1,000 crore annually.
The Union territory administration announced its decision to render the plaza toll-free in a notification issued by the Finance Department.
"In exercise of the powers conferred by section 4 of the Jammu and Kashmir Levy of Tolls Act, the government of Jammu and Kashmir hereby directs that the toll post set up at Lakhanpur, district Kathua under the provisions of the Act, shall cease to operate with effect from January 1, 2020," Financial Commissioner Arun Kumar Mehta said in the notification.
In February, the administration had constituted a committee to examine the level of toll tax being levied on various products entering Jammu and Kashmir, production and export of locally produced products and modification, if any, as may be needed in the levy of toll tax.
The J&K government abolished the tariff amid the trader groups insisting upon the tariff abolition while local industrialist opposing the demand arguing that it would be a death knell for the local industry.
Earlier on February 6, 2018, the then Jammu and Kashmir government had abolished two major toll posts at Lower Munda along Jammu-Srinagar Highway in Anantnag district and Borehallan-Heerpur along Mughal road in Shopian district.