Tamil Nadu government plan to hike vehicle tax to hit Kerala tourists

KOCHI: Bleak days await Keralites who fancy a pleasure trip or pilgrimage to locations in Tamil Nadu. After the Tamil Nadu government passed the bill to increase taxation on motor vehicles entering the state from neighbouring states, tourist bus operators are considering stopping services.
As per the new taxation, a tourist motor cab should pay Rs 60 per entry for a period not exceeding more than seven days.The charge increases alongside the days spent inside Tamil Nadu, and for 30 days it is Rs 180 while for 90 days it is 450 per entry. Tourist maxi cabs will have to pay Rs 75 per entry while omni bus including sleeper coach will have to levy Rs 600 per seat or berth and the tax will increase up to Rs 3,500 depending on the period of operation inside Tamil Nadu. All-Kerala Tourist Bus Operators Association state president Sebastian Kuttikattil said that confusion prevailed among operators since a proper clarification regarding the new tax was yet to come.
"An interstate agreement between Kerala and Tamil Nadu already exists as per which no tax should be levied on tourist vehicles entering and leaving states. But from Wednesday we have been asked to pay the increased tax on border posts. At a time when fuel prices and third party insurance rates have increased this will be a heavy burden on us," he said. Sebastian said that the association would prepare a memorandum and submit it to the state transport commissioner for more clarification on the matter.
"If implemented, Kerala tour operators will have to stop services to Velankanni, Ootty and similar locations because our customers belong to the middle class and lower middle class category whom we can't charge more. Daily bus operators between cities like Coimbatore and Chennai will be forced to charge more," said Baby Thomas, managing partner of Princy Travels.
Tamil Nadu transport authority joint commissioner (rules) R Radhakrishnan said the bill was under discussion with the legislative assembly and a final decision would happen later. He said that RTOs on border areas had been asked to stop collecting taxes and to allow tourist vehicles from Kerala to operate normally for the time being.