THIRUVANANTHAPURAM: The 10% reduction in road tax announced in the recent state budget has evoked lukewarm response from stage carriage operators.
While Balagopal emphasised that the cut was intended to promote public transportation, bus operators argued that it did little to address the sector’s ongoing issues. According to them, the 10% reduction equated to a Rs 12,000 decrease in annual road tax – roughly Rs 30 a day – for a 48-seater stage carriage bus.
While acknowledging the tax cut, the Kerala State Bus Operators Federation (KSBOF) and All Kerala Bus Operators Organisation (AKBOO) expressed concern that recent reductions had failed to offset the Rs 2 social security cess on petrol and diesel introduced in the 2023-24 budget.
“While the tax cut offers some relief, we still pay at least Rs 160 as cess. The bus industry pays road tax, and the government benefits from our fuel purchases. Compare this to the support the government gives KSRTC — it gave the carrier Rs 1,479 crore to operate 3,500 buses over 10 months,” said Hamsa Erikunnan, KSBOF general secretary.
He also said lack of growth in business translates to fewer new entrepreneurs entering the industry.
“The stage carriage industry is in a downturn. On the one hand, the transport department is trying to seize profitable routes for KSRTC, while on the other, there are no guidelines or incentives for providing student concessions,” he said. The fleet size of the stage carriage industry shrunk from 34,000 once to 11,000 by 2019, and following Covid to 7,500, he said.
AKBOO general convener T Gopinathan urged the government to seriously consider their demands to support public transport and sought exemption of private buses from any toll collection proposed by the government.
Not an easy run
10% cut in road tax to cost exchequer Rs 9 crore
*Annual Road Tax: Rs 1,20,000
*After tax cut: Rs 1,08,000
Pvt stage carriage buses in 2010: 34,000
After Covid: 7,500
Major worries of bus operators
Grabbing of profitable permit for KSRTC
No guidelines or revision of student concession
* For 48-seater stage carrier bus