Tax dispute prevails, Inter-state Pvt buses across South India remain stalled

Inter-state private buses that serve as a lifeline for those travelling between southern Indian States Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Telangana, remain suspended since the start of this week, amid a tax controversy. Private operators allege that the Tamil Nadu Government has been levying additional state taxes on other-state buses coming into the state, despite those buses having paid and obtained an All India Tourist Permit(AITP). In light of this, neighbouring states have begun to impose reciprocal taxes and fines upon buses entering from Tamil Nadu. Private bus operators point out that they would not resume their services until this tax controversy is resolved.

The Chennai-based All Omni Bus Owners Association points out that on 7thNovember, about 30 of 100 buses that went from Tamil Nadu to Kerala were suddenly impounded by the Kerala Transport Department and that a fine of more than Rs.70lakhs was imposed. Likewise, the Karnataka Transport Department had also impounded more than 60 buses from Tamil Nadu, imposing a total fine amount of Rs.1.15crore. Karnataka and Kerala maintain that they are merely reciprocating the actions of the Tamil Nadu government, which is collecting state taxes from other-state buses even when they have an All India Tourist Permit.

In light of such Tamil Nadu registered buses being impounded in other states, operators stopped their services between Tamil Nadu and Kerala from 7thNovember.

"For inter-state Omni buses that are operating from Tamil Nadu, we pay a quarterly road tax of Rs.1,50,000 to the Tamil Nadu Government, and an AITP tax of Rs.90,000. In addition to this, Kerala and Karnataka are levying a road tax of about Rs.2,00,000, which takes our total taxes paid to Rs.4,50,000 per quarter, this makes our operations infeasible," says the Association.

This week, the bus operators' representatives met the Tamil Nadu Transport minister and the relevant officials to seek a solution. However, the deadlock continues. Bus operators say that more than 600 private buses operating between states have halted services. They urge the Tamil Nadu government to ease the taxes on other-state buses, so that the ongoing issue could be resolved.

The upcoming Sabarimala pilgrimage season is one where a massive number of other-state buses travel into Kerala, ferrying thousands of devotees. Therefore, bus operators are looking at an early resolution to the ongoing inter-state issue.