The Karnataka State Travel Operators’ Association and State Bus Owners’ Committee have urged the government to waive road tax for six months and collect only 50% of the tax for the next six months due to COVID-19.
Association general secretary K. Radhakrishna Holla told The Hindu that the two-month tax waiver announced by the government on Tuesday had to be announced as 95% of bus operators had surrendered their permits. The order too was flawed. Instead of waiving tax for specific two months, it waived tax from March 24 to May 23. Tax is collected monthly and not daily, he pointed out.
Mr. Holla said the Union government has validated all transport related documents till June 30 in view of the pandemic. The State government, however, issued the waiver order in a hurry, he felt. Business cannot be usual in near future and operators would continue to suffer losses if they operate services. Besides paying road taxes, operators would indirectly pay hefty taxes to Union and State governments when they buy diesel, he pointed out.
The association, represented by Mr. Holla and general secretary S. Nataraja Sharma, in a memorandum to the government on Monday, had pointed out that private bus operators of Karnataka contribute over ₹6,200 crore towards government revenues through different taxes on vehicles, spare parts and consumables. With the lockdown, the entire sector is in deep trouble and expecting operators to pay taxes during the lull would not be good on the part of the government. The government should come to the rescue of the sector, they had urged.
