Heavy tax levied by State on tourist buses could stem visitors’ inflow

For a 34-member tourist delegation from Gujarat which undertook a trip to Kerala via road, the trip turned sour after a tax of ₹1,07,000 was slapped on them by the Transport Department. Speaking to The Hindu, Anil Kayasth, owner of Jeeya Travels, Bharuch, Gujarat, said the tourist bus has paid a tax of around ₹15,200 at the Amaravila check-post near here on Thursday for travelling inside the State for the next seven days.

“Later, when the team reached Munnar, a motor vehicle inspection team from the Transport Department approached us and issued a chalan for paying ₹91,500 as quarterly tax for entering the State. We used to bring tourists here from Gujarat earlier too and this is for the first time that bus owners are being levied a huge tax by the authorities here. If this is the situation, we will advise tourists to opt for other destinations as passing the tax burden to them will not be proper,” said Mr. Kayasth.

High Court ruling

If the State government goes ahead with its decision to levy additional home tax on other contract carriages registered in other States, the recovery of tourism in Kerala could be a tad more difficult. The Motor Vehicle Department started levying additional tax on vehicles entering the State borders with all-India permit from November 1. While setting aside the plea of tourist bus owners, the High Court has held that tourist vehicles registered in other States with all-India permit can be taxed in Kerala.

A.J. Rijaz, working president, Contract Carriage Operators Association, Ernakulam, said the decision would cast a shadow on the domestic tourism sector in Kerala as the owners of contract carriages would be forced to either pass on the burden to tourists or advise tourists to opt other destinations.

Less in other States

A senior Transport department officer said States like Karnataka and Tamil Nadu were also charging home tax on vehicles entering their jurisdiction with all-India permit, although their charges were compared less. However, in the face of strong opposition from the industry, the State government is likely to revise the home tax slab, said sources. A tourist contract carriage entering the State will have to pay a tax of ₹4,000 per seat as quarterly tax as per the new decision.