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The Hindu·3 min read·medium

Transport department mulls ‘One State, One Tax’ system

S
Syed Mohammed
Transport department mulls ‘One State, One Tax’ system
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The Transport Department is considering a 'One State, One Tax' system to simplify tax structures for tourist buses and eliminate the need for multiple permits. Officials are currently studying models from other states to replace the existing three-tier tax system.

Why it matters

This policy change aims to streamline transport regulations and improve operational efficiency for thousands of tourist bus operators.

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With the aim of rationalising quarterly taxes and introducing seamless movement of tourist buses, but without the need for multiple permits, the Transport Department is exploring a One State, One Tax system.

Transport Commissioner K Ilambarithi on Friday chaired a meeting with tourist bus operators to discuss the proposed changes. According to the department, the existing system entails tourist buses being taxed under three separate quarterly tax slabs: single district tax, two district tax, and a State tax.

The move seeks to replace this existing three tier structure with a more uniform State wide tax system. The objective, according to the department, is to simplify the tax regime while ensuring little to no overall tax liability on operators remains.

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