A committee has recommended a significant change to the tax system for contract carriage buses in Telangana. The proposal suggests replacing the current three-tier tax structure with a single, uniform tax rate of ₹1,510 per seat per quarter for buses with state-wide permits.
This new system would apply to contract carriages permitted to carry more than 12 passengers, excluding the driver. The committee studied tax slabs in other states like Kerala, Karnataka, Maharashtra, and Odisha, deeming the proposed rate to be moderate.
The report, submitted by Transport Commissioner K Ilambarithi, highlights that the increase in the number of districts to 33 following the 2016 reorganisation has led to contract carriages needing temporary permits for routine operations in neighboring districts. This has resulted in a substantial rise in the issuance of temporary permits.
The committee also noted an alleged misuse of these temporary permits. Some operators holding One District Permits have reportedly been obtaining multiple temporary permits to operate across districts for extended periods, effectively paying less tax than those with State Permits.
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Source: thehindu.com
