The tax after the hike would be higher as compared to that prevailing in neighbouring states of Karnataka and Tamil Nadu. It is expected to adversely affect around 500 tour operators from other states.
The worst affected would be tourists coming from far-flung places having no rail connections to Kerala.
Currently tourist vehicles regularly plying to Kerala from other states pay the entry tax every three months. From January onwards the taxes would be levied on a single trip basis.
Tourist buses having a seating capacity of 30 to 35, which were till now paying Rs 49,500 every quarter, would have to hereafter pay up Rs 5,000 for every trip.
As such these vehicles may have to cough up around Rs 4.5 lakh in place of Rs 49,500, which they used to pay every quarter.
A section of tourist vehicle owners from other states have taken the legal course against the tax move.
At present Kerala levies an entry tax on a quarterly basis at Rs 1,650 per seat, while Karnataka and Tamil Nadu have been levying Rs 1,750 and Rs 2,000, respectively. These states have not announced any hike so far. Vehicle owners fear that these two states may resort to a similar hike in the near future.
It is estimated that around 500 tourist vehicles come to Kerala everyday from Bangalore, Mumbai, Coimbatore, Chennai and Mysore. Tour operators who ply their vehicles on tourist permits issued by the Kerala government may therefore find this hike unbearable.
