Haryana Wednesday exempted vehicles of educational institutions from paying tax, an official said.
Chief Minister Bhupinder Singh Hooda presided over the cabinet meeting in which this decision was taken.
"This will not only improve the financial viability of such vehicles, but also the parents of students will not be burdened with extra transportation charges," a government spokesman said.
Earlier, the state government had allowed tax exemption only to vehicles owned by the managements of educational institutions. Vehicles owned by private parties and used for carrying school children under an agreement with the schools were not entitled to this exemption.