Andhra Pradesh's High Taxation Pushes Bus Operators to Northeast States
In a significant shift within the transport sector, private bus operators in Andhra Pradesh and other southern states are increasingly registering their vehicles in north-eastern regions to circumvent high taxation and stringent enforcement norms. This trend highlights a growing disparity in regulatory frameworks across India, with operators seeking more favorable conditions in states like Nagaland and Arunachal Pradesh.
Tax Burden and Permit Fees Driving the Exodus
Currently, operators in Andhra Pradesh face a hefty fee of ₹4,000 per seat for bus registrations, which amounts to ₹1.60 lakh for a 90-day permit for a 40-seater bus, or an annual cost of ₹6.40 lakh. In stark contrast, Union Territories such as Puducherry, Daman and Diu, and states including Goa, Odisha, Chhattisgarh, Nagaland, and Arunachal Pradesh levy significantly lower permit fees, ranging from ₹500 to ₹1,500 per seat. This financial incentive is a primary driver behind the migration of registrations.
Operational Challenges and Monitoring Issues
According to AP Transport Commissioner Manish Kumar Sinha, approximately 200 to 300 operators from Andhra Pradesh have already registered buses outside the state, yet these vehicles continue to operate services within AP and to major cities like Bengaluru, Chennai, Mysuru, and Pune. This practice complicates monitoring efforts, as many buses have origin and destination points in different states, creating jurisdictional overlaps and enforcement hurdles.
Revised Norms and Future Regulations
Sinha noted that revised norms under the All India Tourist Vehicles (Permit) 2023 are set to come into force from April 1, 2026. These changes aim to enhance the regulation of buses registered outside Andhra Pradesh but operating within its borders, potentially addressing some of the current loopholes. The new framework is expected to provide better oversight and streamline compliance across state lines.
Safety Norms and Modification Flexibility
Officials further explained that strict safety norms in Andhra Pradesh make it difficult for operators to modify bus bodies, such as converting seater buses into sleeper coaches or increasing seating capacity. In contrast, north-eastern states are more liberal in approving such modifications, offering operators greater flexibility and cost savings. This regulatory leniency adds to the appeal of registering vehicles in these regions.
The trend underscores broader issues in India's transport policy, where varying state-level regulations create incentives for operators to shop for the most favorable jurisdictions, potentially impacting safety standards and revenue collection in high-tax states like Andhra Pradesh.
