Committee recommends replacing Telangana’s three-tier tax slab for contract carriages with single tax system
A government committee in Telangana has recommended replacing the current three-tier tax structure for contract carriage buses with a uniform tax rate. The proposal aims to simplify tax collection and address the misuse of temporary permits following the state's district reorganization.
Why it matters
Standardizing tax structures can reduce administrative loopholes and ensure equitable revenue collection for public transport infrastructure.
A committee has proposed replacing the existing three-tier tax structure for contract carriage buses in Telangana with a uniform tax of ₹1,510 per seat per quarter for State-wide permits.
The report on ‘Rationalisation of Tax on Contract Carriage Buses Plying within Telangana’, submitted by Transport Commissioner K Ilambarithi, recommended replacing the existing permit-wise tax rates of ₹1,120 for One District Permits, ₹1,510 for Two District Permits and ₹3,285 for State Permits with a uniform rate. The proposal covers contract carriages permitted to carry more than 12 persons, excluding the driver. The committee studied and compared tax slabs of various states including Kerala, Karnataka, Maharashtra and Odisha before concluding that the recommended tax slab is “moderate” in nature.
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