Hyderabad: The inability of Andhra Pradesh and Telangana to amicably resolve the quarterly transport taxation issue will affect people adversely. AP resorted to retaliatory taxation after imposition of tax by Telangana.
Insiders say that transportation cost will jump 20 per cent in a year and transport operators were already paying taxes to both the states.
Government officials on both sides feel that it is the battle of wills between the two governments that has translated into this sudden dual taxation.
The decisions by both states were taken without discussions with the other side. TS has collected Rs 4.5 crore in tax since April 2 when the new quarterly tax (for entry) on AP vehicles came into effect.
In retaliation, the Andhra Pradesh government came up with the same tax structure to ensure “balanced taxation” on vehicles.
“As the quarterly tax was an additional burden on AP vehicles, it was necessary to impose a tax on TS vehicles too to keep things balanced. At the end, the common people will suffer due to this inability of the two state governments to decide on the quarterly tax. Transportation costs have already gone up and it will lead to higher costs of living for people in both states,” said a senior official from the transport department.
“Rice and vegetable suppliers from Vijayawada increased delivery cost by 5 per cent after the new tax was imposed by TS earlier this month.,” said general secretary of the Twin Cities Retailers’ Association Dilip Pansari. Bus operators have said that the new taxation by AP, will hit them hard.
Insiders say this will affect the industry also as there is large-scale transportation between the two states, but will not be immediately increase prices. Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry vice president V. Anil Reddy said, “ he industry is concentrated in and around Hyderabad while 55 per cent of the it is consumed by AP. Since consignments are in bulk, the increase is not visible yet.
