Plunging the two newly-created States of Andhra Pradesh and Telangana into a mini-crisis, owners of private buses operating from Andhra Pradesh have decided to suspend their services from midnight of Tuesday in protest against the decision of the Telangana government to impose tax on all private vehicles carrying goods and passengers from Andhra Pradesh to its territory.
The decision is expected to have an adverse impact on flow of goods from Andhra Pradesh to Telangana. The lorry and bus service associations are likely to knock on the doors of the courts seeking a stay on the tax imposed by the Talangana government.
At a news conference here AP Transport Minister Sidda Raghavarao said on Tuesday that he had personally requested Telangana Transport Minister Mahender Reddy that the intra-State vehicles carrying passengers and goods be spared of tax as it would burden people in both the States. He regretted that though his Telangana counterpart promised to take the proposal to his Chief Minister, the next day the Telangana government issued the GO, he added.
Mr. Rao however said he was still hopeful that the Telangana government would reconsider its decision as Hyderabad would be common capital for 10 years and spare people from the inevitable hike in fares and cost of goods.
Despite Telangana State’s decision to levy tax on all transport and private vehicles carrying goods and passengers from Andhra Pradesh to its territory, the neighbouring Andhra Pradesh is not in a hurry to follow suit.
The AP Reorganisation Act of 2014 empowers the two newly created States to impose tax on all private vehicles coming from outside the State. Telangana government had ordered collection of such tax in June 2014. However, following request from lorry and private operators, Governor (who is common to both the states) had then taken a decision barring either State from imposing any tax for the intra-transport of passengers and goods till midnight of March 31, 2015.
As of now there is no estimate of the number of vehicles entering from Andhra Pradesh to Telangana as there are over half-a-dozen border points between the two States. Among others several essential commodities like milk, vegetables, fruits and rice are transported from Andhra Pradesh to Telangana.
