KOCHI: In what can be termed a major relief for interstate tourist-bus operators in the state, the budget has proposed a cut in taxes on buses with all-India tourist permits (AITPs).
Currently, vehicles that should be registered in Kerala at times end up being registered in states such as Nagaland and Arunachal Pradesh, where taxes are relatively lower. This trend impacts Kerala’s revenue generation, in terms of loss of both registration tax and fitness test fees.
Finance Minister KN Balagopal proposed the move after noting that the number of tourist buses with national permit registered in the state is very low. “They take advantage of the new rules regarding tourist permits implemented by the central government and regularly ply in the state. This causes a tax loss and a loss in registration fees and fitness test fees. Therefore, to facilitate the registration of such vehicles in Kerala itself, the tax on all-India tourist permit buses has been decreased...,” Balagopal said in the budget speech.
According to the budget proposal, tourist bus owners with national permits will receive a discount of Rs 1.2 lakh on annual tax.
National permit buses with regular seats are currently taxed at Rs 2,250 per seat for three months. Under the latest budget provision, this will be cut to Rs 1,500. Buses with push-back seats are currently taxed at Rs 3,000 per seat for each quarter. The government proposes to reduce this to Rs 2,000. The tax on sleeper-berth buses has been reduced from Rs 4,000 to Rs 3,000 per berth.
A quarterly tax will be collected from tourist buses registered in other states that regularly ply in Kerala. “Vehicles registered in other states that enter Kerala occasionally for tourism purposes will have to pay one-tenth of the quarterly tax for a period of seven days. If the bus remains in Kerala for more than seven days, the tax will be collected for each month. The taxation act will be amended accordingly,” the minister said.
Focus on a modern & more efficient KSRTC
In a significant move aimed at revitalising the state’s transportation sector, the government said it has implemented comprehensive reforms, leading to a substantial increase in financial aid provided to the Kerala State Road Transport Corporation (KSRTC). A significant portion of Rs 128.54 crore set apart for the corporation has been earmarked as plan funds for various activities of KSRTC, its budget said.