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Tourist-tagged coaches to have free run across India

The government is working out a plan to simplify inter-state movement of tourists by dividing the country into nine zones. A tourist’s taxi or luxury coach can travel freely in a zone by paying tax in the state where it is registered. According to a report in Economic Times (ET), the proposed move already approved by certain states will reduce road taxes and other levies by 50 per cent and also save travel time by avoiding payment of taxes at multiple check points.

“The scheme, circulated to state governments, includes allocation of a separate registration series ‘TV’ (tourist vehicle) for all tourist vehicles and payment of a quarterly tax of Rs 25,000 in the home state. A zonal permit will be issued to the vehicle by the state government,” said a Ministry official of Road Transport and Highways. The tax paid by vehicle operators will be distributed among the states falling in the zone. “We are still working out a mechanism for distribution of the tax among the states. These exemptions will be applicable only to vehicles owned by transport operators approved by the Ministry of Tourism (MoT),” added the official. At present, tourist transport providers pay a tax of Rs 1,000-1,500 per vehicle in their home state. Apart from this, they pay tax while entering any other state, which is charged on the basis of kilometres to be covered in the state. “The process of tax payment at the border leads to unnecessary delays. We have made formal request to the Ministry of Road Transport for the exemption,” said Sarabjit Singh, President, Indian Tourist Transporters Association.

Singh further added that tour operators are skeptical as they feel that the state authorities lack the will power to implement the move. In the past, a similar proposal—All India Tourist Permit—which included similar exemptions for the tourist transport operators could not be implemented. Despite this permit, transporters had to pay separate taxes in every state they entered. There are about 12,000 tourist vehicles in the country, transporting about 90 per cent of tourists.

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