In a recent national-level meeting of Transport Ministers held in New Delhi, Himachal Pradesh’s Deputy Chief Minister, Mukesh Agnihotri, raised important concerns about the growing tax disparity between All India Tourist Permit (AITP) buses and stage carriage buses operating in the state. He emphasized that the current imbalance in taxation is fostering unfair competition, which is undermining the financial sustainability of the state’s transport system.

Agnihotri highlighted a key issue in Himachal Pradesh: AITP buses, which are supposed to operate under contract carriage permits, are functioning as stage carriage buses. This shift has provided AITP operators with a significant tax advantage, as they are taxed at lower rates compared to stage carriage buses operated by the State Transport Undertakings (STUs). As a result, the STUs face higher tax burdens, putting them at a competitive disadvantage and threatening the financial viability of the state-run transport services.

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The Deputy Chief Minister pointed out that the tax disparity not only harms the STUs but also creates an uneven playing field that undermines the integrity of the state’s public transport system. He urged the central government to take swift action to address the issue and ensure that both AITP and stage carriage buses are taxed fairly and equally.

Agnihotri also raised concerns regarding the allocation of space in bus stands. He noted that AITP private operators are using bus stand spaces intended for stage carriage buses, further exacerbating the challenges faced by the state-run transport system. He called for clear regulations to prevent the misuse of these spaces by AITP operators and ensure fair access to bus stand facilities for the STUs.

To resolve these issues, the Deputy Chief Minister proposed that the Union government review the current regulations and make the necessary adjustments to promote fairness and foster a competitive environment for both AITP and state-run buses.

Union Minister for Road Transport and Highways, Nitin Gadkari, acknowledged Agnihotri’s concerns and assured that the matter would be discussed in detail during an upcoming meeting of the Committee of All State Secretaries. Gadkari expressed his commitment to finding a solution that ensures a level playing field, supporting the growth and sustainability of Himachal Pradesh’s state-run transport systems.