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The Hindu
The Hindu
National
Special Correspondent

Contract carriage operators in Kerala seek one-time settlement of tax

Contract carriage operators have sought one-time settlement of road tax, since most of the 14,000 bus and other contract carriage operators are neck-deep in crisis, with little patronage from tourists, picnic-goers and others for their buses following the pandemic-induced crisis.

All contract carriage buses whose tax is overdue must be included in the amnesty scheme of the Motor Vehicles Department (MVD) which permitted one-time tax settlement for vehicles whose taxes are due for four years or more, demanded the State committee of Contract Carriage Operators’ Association (CCOA), in a memorandum submitted to Antony Raju, Minister for Transport.

The situation is such that the fine amount alone due to non-remittance of tax of vast many bus operators has accrued to 50% of their tax due. Many of them have been served with auction notice of their properties, including their houses, due to their inability to repay loan, said Binu John, president of CCOA.

The frequent changes in the upper limit on the number of people attending weddings and other events had resulted in many contract carriage operators filing the G-form and keeping away from service, to avoid payment of tax.

As per rules, the owner of a 49-seater bus has to pay as high as ₹49,000 as tax every quarter, said Royson Joseh, the proprietor of city-based Royal Tours, who offered to sell his fleet of tourist buses for as low as ₹45 per kg, a month ago. “I have still not been able to sell the buses, since there are few takers,” he said.

He had to sell of 10 of his 20 buses following the pandemic situation.

Innumerable people like him have quoted such rock-bottom rates for their contract carriage buses and smaller tour vehicles, it is learnt.

The condition of stage carriage buses, those which ferry commuters within the State, is relatively better. Most of them have resumed service following improvement of patronage.

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