Govt. urged to exempt RTC from VAT, Excise Duty, and toll taxes

The recent steep hike in diesel prices for bulk users (by Rs.12) will impose an additional burden of Rs.85.35 crore per year on Vijayawada Zone of Andhra Pradesh State Road Transport Corporation (APSRTC).

The RTC is operating 3,151 buses from Krishna, Guntur and West Godavari districts (i.e.Vijayawada Zone) every day, covering an average of 3.10 crore kilometres per month.

The Corporation requires 59.24 lakh litres of diesel a month and was spending about Rs.30 crore on fuel, at Rs.50 per litre.

The recent hike in diesel prices for bulk users by Rs.12 per litre will impose an additional burden of Rs.7 crore every month, said the APSRTC officials.

Deep crisis

Speaking to The Hindu, on Monday RTC Vijayawada Zone Executive Director M.S. Prakasa Rao said that the steep hike in diesel prices would cause severe loss to the organisation, which was already in deep financial crisis.

“Hitherto, the RTC used to pay Rs.50 per litre of diesel and now the price has soared to Rs.62 inclusive of taxes. The Corporation has to bear Rs.85.35 crore additional burden per year due to the hike. The RTC was spending more than Rs.1,000 crore only on diesel per annum in Vijayawada Zone”, said the ED.

RTC loss

APSRTC Executive Director (Administration), A. Venkateswara Rao, who visited Vijayawada during 24th National Road Safety Week celebrations recently said that the RTC loss was Rs.2,800 crore and the management had borrowed Rs.4,000 crore from banks for paying salaries to employees.

“Despite facing challenges from private operators and the financial problems, RTC is extending better services to the passengers and was taking care of its employees. We requested the Government to exempt RTC from excise duty on High Speed Diesel (HSD), toll tax, Value Added Tax (VAT) and Motor Vehicle tax to pull out the corporation from losses”, said Mr. Prakasa Rao.

Sankranti earnings

The Corporation operated 1,350 special buses during Sankranti festival in the Vijayawada Zone, to clear the extra rush of passengers and earned Rs.1.78 crore.

The RTC transported 1.75 lakh passengers to various destinations during the vacations (up to January 20) including Hyderabad, Chennai, Bangalore, Tirupati, Visakhapatnam and other cities, said the ED.