The High Cost of Taxes: Private Buses Grounded, Rs 36 Crore Lost

The ongoing interstate tax dispute has forced private bus operators with All India permits to suspend operations since November 11, causing significant financial losses. The Tamil Nadu Omni Bus Operators Association reports losing Rs 4 crore daily due to canceled trips, leading to an overall loss of Rs 36 crore in nine days.

Operators argue that while they pay road taxes in their home states, multiple other states levy additional taxes, making operations financially unsustainable. Despite the strike, tourist buses running pilgrim services to Sabarimala continue operating.

The State Express Transport Corporation (SETC) has introduced special buses from Chennai to Pampa to accommodate pilgrims, while only about 20% of interstate operators participate in the strike. Officials claim minimal public impact and readiness to increase service if needed.

Around 20,000 drivers and conductors dependent on omni bus services are affected. The Tamil Nadu government has promised a swift decision on whether penalties will be imposed on out-of-state vehicles.

Key Highlights

Interstate private buses with All India permits off roads since November 11 due to tax disputes.​

Estimated daily losses of Rs 4 crore, totaling Rs 36 crore over nine days.​

Dispute centers on multiple states levying road taxes despite central All India permits.​

Tourist buses running pilgrimage routes continue operations.​

SETC runs special buses to meet pilgrimage demand.​

About 20,000 drivers and conductors affected economically.​

Government talks ongoing to resolve penalty and tax issues.​

Sources: The New Indian Express, NDTV, Tamil Nadu Omni Bus Operators Association statements.​