10% tax cut insufficient, say bus operators

While min said reduction intends to promote public transportation, operators say it would equate to ₹12k dip annually

- K S SREEJITH @T'Puram

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 ₹12,000 decrease in annual road tax - roughly ₹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 ₹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 ₹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 ₹1,479 crore to operate 3,500 buses over 10 months," said Hamsa Erikunnan, KSBOF general secretary.