Tourist operators in Telangana are losing out in the bargain

The decision to levy entry tax on motor vehicles arriving from neighbouring Andhra Pradesh State seems to have boomeranged on Telangana.

As per the data obtained by the Communist Party of India (Marxist), GHMC unit, through a petition under the Right to Information Act, Andhra Pradesh apparently had the last laugh in this bout of sibling rivalry, as the balance tipped in its favour at the end of the financial year.

Data of income from tax collected at border check-posts for the financial year 2015-16 for both states reveal that Telangana vehicles entering A.P. ended up paying more than the A.P. vehicles entering Telangana. Only exception is the contract carriages from A.P. which provided way higher income to Telangana, than their counterparts from Telangana did to A.P.

At the end of the year Telangana vehicles entering A.P. paid close to Rs. 31 crore as entry tax, while those from A.P. entering Telangana paid mere Rs. 25 crore.

Major portion of the income to A.P. had come from goods carriers, while the same for Telangana was from contract carriages. A total of Rs. 16.6 crore was paid by goods carriers from Telangana, while the same from A.P. goods carriers was only about Rs.10 crore. On the other hand, Rs. 13.39 crore was earned by Telangana from the levy of tax on contract carriages from A.P. as against payments of Rs. 9.5 crore into A.P. government’s chest by contract carriages from Telangana. On the Tourism front too, A.P. was the gainer, with Rs. 1.26 crore earned from Telangana tourist buses. Income from those entering Telangana from A.P. stood far lower at Rs. 3.84 lakh only.

In the category of maxi cabs/motor cabs too, A.P. has earned more than it has lost to Telangana.

It garnered Rs. 3.6 crore, as against Rs. 1.22 crore earned by Telangana.

City secretary of CPI (M) M. Srinivas says AP’s income would have been even higher, had it begun collecting tax right from the beginning of the financial year, as Telangana did. The tax was, instead, levied from April 24 onwards, he said.