The proposals sent by the APSRTC seeking a waiver of the Motor Vehicles Tax that it pays annually to the government and exemption of Value-Added Tax (VAT) on the increased price of high speed diesel are in an advanced stage of negotiation.
The RTC pays about Rs. 450 crore every year towards MV Tax for the 22,000-odd buses that it owns, apart from which the VAT burden on the increase of Rs. 11.89 per litre of diesel comes to a whopping Rs. 110 crore.
These two figures totalling to Rs. 560 crore form a bulk of the Corporation’s burden freshly added since the last diesel price hike recently.