Inter-State Omni Buses To Stay Off Roads Across South India Over Tax Disputes

Inter-state omni bus operations across South India would come to a standstill from today, with operators in Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Kerala, and Puducherry joining a coordinated strike to protest what they call "unfair and unsustainable" road tax levies by individual states.

At least 1,500 omni buses would be off the roads, severely impacting travellers who rely on private long-distance services between the southern states. Bus operators say the issue stems from multiple states imposing road taxes on vehicles already holding All India Permits, which are issued by the Centre and recognised nationwide.

The Tamil Nadu Omni Bus Association has called the current tax structure for inter-state operators "unsustainable and unviable," citing a heavy financial burden. 

A member of the Tamil Nadu Omni Bus Association told NDTV, "Besides the All India Permit, which the Centre shares with states, we already pay 'home tax' in the state where our buses are registered. In addition when other states too impose road tax, it becomes unsustainable and unviable for operators."

The issue has its origin from Tamil Nadu when the state government in the past imposed road tax for omni buses from other states. Now with other states following suit, associations argue that these additional state-level taxes defeat the purpose of the All India Permit system and threaten the viability of private inter-state operations.

The Tamil Nadu Omni Bus Operators Association is scheduled to meet the State Transport Minister today to seek an immediate resolution. The state government is expected to issue a statement after the meeting.

The protest comes even as omni bus operators face criticism for allegedly overcharging passengers, particularly during festive seasons, when fares often soar to two or three times the usual rates. Operators, however, argue that rising fuel prices, tolls, and taxes have made operations increasingly difficult.

The Luxury Bus Owners Association, Kerala State Committee, had announced that inter-state tourist bus services from Kerala to both Tamil Nadu and Karnataka will be suspended starting at 6:00 pm on Monday.

According to Association State President AJ Rijas, this decision was necessitated by neighbouring states levying heavy fines, imposing unlawful state-level taxes, and seizing buses belonging to Kerala operators that hold the All India Tourist Permit (AITP).

General Secretary Maneesh Sasidharan had said that despite these vehicles having valid AITPs issued under the Central Government's Motor Vehicles Act, tourist buses from Kerala are continuously being stopped, fined, and detained by authorities in Tamil Nadu and Karnataka.