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Entry tax for AP vehicles challenged; HC gives interim relief

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Press Trust of India Hyderabad
In a partial relief to some of private bus operators in Andhra Pradesh, the Hyderabad High Court today issued interim orders asking them to submit indemnity bonds at check posts while entering Telangana instead of paying tax.

Telangana government yesterday issued an order imposing entry tax on transport and commercial vehicles coming from Andhra Pradesh from today, treating them as 'other state vehicles'.

Some transporters from AP have challenged the tax in the High Court. The division bench headed by Chief Justice Kalyan Jyothi Sengupta observed that the petition raises some larger legal questions and therefor the petitioners should get interim relief.
 

The court said that for the time being the petitioners can give indemnity bonds to Telangana transport authorities at entry points declaring that if they lost the case in the High Court they would pay the tax.

The petitioners contend that as Hyderabad is the common capital of Andhra Pradesh and Telangana, a lot of people come here from AP for work every day and vehicles coming from AP cannot be treated as 'other state vehicles'.

Further hearing would be held next week.

Around 750 to 800 private passenger buses ply daily between Andhra Pradesh and Telangana. With the entry tax, the fare from Vijayawada to Hyderabad would go up by Rs 50, said S Bose, president of AP Private Bus Operators Association.

Currently, the fare ranges from Rs 350 and Rs 500.

AP Lorry Owners Association General Secretary Y V Eswar Rao said Telangana government had imposed entry tax ranging from Rs 772 to Rs 1,680 depending on the capacity of the truck. "We will wait for some time before taking up the issue legally. We are talking to AP government," Rao told PTI.

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First Published: Apr 01 2015 | 8:13 PM IST

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