Operators from Kerala, Tamil Nadu, Karnataka & Andhra suspend services over cross-state tax & permit friction
What’s Happening
- Bus operators across South India – including from Kerala, Tamil Nadu, Karnataka and Andhra Pradesh – have announced or are considering a suspension of interstate bus services owing to disputes over road tax, permit enforcement and deterrent fines.
- The core of the problem: vehicles with valid “All India Tourist Permit (AITP)” or interstate permits are being detained, fined or taxed by states where they operate, despite being registered elsewhere.
- Example: In Tamil Nadu and Karnataka, buses registered in neighbouring states were reportedly intercepted, and taxes/fines collected quickly — pushing operators to the brink.
- Operators say they’re left with no choice but to pull out of routes unless there’s resolution from the state transport and tax authorities.
Why It Matters
- Passenger impact: Suspension means those travelling across states may face cancellation of bus services, rerouting or higher costs.
- Economic ripple: Bus operators already working on thin margins may incur heavier losses due to fines, detentions and loss of business.
- States vs operators: While states argue for revenue protection and tax compliance, operators argue the system undermines the value of All-India permits and burdens them with duplication of taxes.
- Permit regulatory stress: The AITP regime (and other interstate vehicle permits) is being tested in real-world compliance across multiple states, highlighting regulatory alignment challenges.
Root Issues
- Interstate buses registered in state A but operating services in states B/C that seek state‐specific road tax or impose fines even with valid permits.
- Lack of uniform enforcement or understanding of how AITP/All-India permits work, leading to states interpreting tax/permit laws differently.
- Bus operators believe they are caught between multiple jurisdictions: registrations in one state, operations in another, tax demands in yet another.
What’s Ahead / Next Steps
- Operators are likely to push state governments & central transport authorities for clarity on interstate permit vs state tax obligations.
- States will need to coordinate so that bus services aren’t disrupted, especially given the importance of interstate connectivity in South India.
- Possible solution pathways include:
- One single road-tax settlement mechanism for interstate buses
- Enforcement protocols between states assuring no double taxation
- Review of permit & tax regimes so that valid interstate permits are respected across states.
- If no resolution, large-scale suspension of interstate bus services could significantly impact travel and transport in the region.
