Inter-state bus operations across South India are grinding to a halt as thousands of vehicles stay off the roads, protesting what operators call “unfair” tax burdens despite holding centralised All India permits.
From today, at least around 1,500 omnibuses belonging to operators in Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Kerala, and Puducherry will suspend services. The issue centres on multiple states levying road taxes on vehicles that already possess an All India Permit issued by the Centre.
Leaders of the Tamil Nadu Omni Bus Operators Association say the current tax structure is “unsustainable and unviable”, pointing out that buses pay tax in their home state, yet face additional tax liabilities when they operate across other states. “Besides the All India Permit… we already pay ‘home tax’ in the state where our buses are registered. Then, when other states impose road tax, it becomes unsustainable and unviable for operators,” one member told NDTV.
The protest came in response to recent enforcement actions in states like Tamil Nadu and Karnataka, where buses with valid All India tourist or omnibus permits were being stopped, fined, or detained for alleged non-payment of state-level taxes.
In Kerala, for example, the Luxury Bus Owners Association – Kerala State Committee announced that inter-state tourist bus services to Tamil Nadu and Karnataka would be suspended starting at 6 pm on Monday, citing harassment, heavy fines, and unlawful state-level tax demands despite the vehicles holding valid All India Tourist Permits (AITP).
Operators say surging fuel costs, tolls, and rising taxes are already squeezing margins, and the layered tax regime makes their business model untenable, which could lead to reduced services and higher fares for travelers. The associations plan to meet with state transport ministers to seek an immediate resolution
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