The Transport Department is considering a 'One State,One Tax' system aimed at simplifying the tax structure for tourist buses in the region. This initiative seeks to eliminate the need for multiple permits and streamline the tax process, which currently involves three separate quarterly tax slabs.
During meeting on Friday,Transport Commissioner K Ilambarithi engaged with tourist bus operators to discuss the proposed changes . The existing framework requires operators to navigate a complex system: a single district tax of approximately ₹1,150 per seat,a two-district tax of ₹1,510 per seat, and a state tax of ₹3,500 per seat per quarter.
Ilambarithi explained that the rationale behind the new system is to create a more uniform tax structure across the state . The goal is to simplify tax regime while ensuring that operators do not face increased overall tax liabilities. He noted that the previous district configurations allowed buses to operate under a one-district permit, but with the recent restructuring of districts into smaller units, this system has become cumbersome.
“Operators often resort to temporary permits, valid for seven days,to travel to other districts,” Ilambarithi said . He acknowledged that many bus operators tend to overuse these temporary permits, which complicates the regulatory environment .
Despite the large number of tourist buses—over 8,000 in total—the revenue generated from this sector is relatively low,standing at around ₹110 crore. department is currently examining tax models implemented in states like Kerala and Karnataka to identify best practices that could be adapted .
Ilambarithi emphasized that the 'One State, One Tax' proposal is still in its early stages. He mentioned that the honorable Minister Ponnam Prabhakar had suggested a comprehensive study of 'One State,One Permit' concept. Various representatives from bus associations have participated in discussions,providing valuable input.
Another aspect of the study will focus on private buses operating under All India Tourist Permits (AITPs). Currently,these buses are registered in states with lower tax rates than those in southern India,resulting in only ₹7 crore in revenue for the state. The Transport Department is exploring the feasibility of reducing the existing AITP tax, which currently stands at ₹4,000.
States like Andhra Pradesh and Kerala have already taken steps to lower taxes, and Telangana is considering similar measures. Ilambarithi reiterated that intent is not to impose higher charges on operators but to foster simplification and rationalization of the tax system.
In light of a recent tragic bus accident near Kurnool, Ilambarithi announced plans for a meeting of transport commissioners from various states. This meeting will address AITP regulations and the monitoring of buses operating under these permits. The date for this meeting will be confirmed soon.
