With an indication of relations getting better between Andhra Pradesh and Telangana, both the states are signing an agreement that would reduce taxation on commercial vehicles passing across the two states. The Telangana government has proposed introduction of "counter signature" system to avoid double taxation on goods carrier vehicles. According to this proposed system, both the states would not collect taxes on a certain number of vehicles moving between them. Reliable sources claim that the 10000 vehicles will be exempted to pay double taxes moving between Andhra Pradesh and Telangana.
The transport department of the state concerned will counter sign the papers of the vehicles so that they could pass through the inter-state check posts without paying the entry tax. In March 2015, separate taxes on commercial vehicles goods carriers had been introduced by both governments. However, after reviewing, it was found that a large financial loss was being incurred because of this development.
"It was observed that vehicle owners from Telangana were paying an additional Rs 4 crore per month due to double taxation system. Most of the vehicles from Telangana move into Andhra and they have to pay the entry tax in AP. With many manufacturing units located in and around Hyderabad, it has become a burden on Telangana goods carriers," said an official in the Telangana transport department.
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Similar impact was with regard to tourist vehicles. This has resulted in loss of income to Telangana and additional burden on tourist operators belonging to the state. Prices of essential and other commodities have also increased becauseof double tax system.
One of the sources claimed, that, both states are thinking to enter into a pact to avoid entry tax on goods, tourist, contract, and stage carriers. A proposal to this effect is being prepared by both governments and a formal announcement will be made soon.
The transport department of the state concerned will counter sign the papers of the vehicles so that they could pass through the inter-state check posts without paying the entry tax. In March 2015, separate taxes on commercial vehicles goods carriers had been introduced by both governments. However, after reviewing, it was found that a large financial loss was being incurred because of this development.
(Image Source: fulltelangana.com)
"It was observed that vehicle owners from Telangana were paying an additional Rs 4 crore per month due to double taxation system. Most of the vehicles from Telangana move into Andhra and they have to pay the entry tax in AP. With many manufacturing units located in and around Hyderabad, it has become a burden on Telangana goods carriers," said an official in the Telangana transport department.
See Also: Supro van and supro truck launched by Mahindra
Similar impact was with regard to tourist vehicles. This has resulted in loss of income to Telangana and additional burden on tourist operators belonging to the state. Prices of essential and other commodities have also increased becauseof double tax system.
One of the sources claimed, that, both states are thinking to enter into a pact to avoid entry tax on goods, tourist, contract, and stage carriers. A proposal to this effect is being prepared by both governments and a formal announcement will be made soon.
