Kerala, TN not to collect entry tax from buses after SC expresses displeasure

NEW DELHI: The Supreme Court has expressed its displeasure with states charging entry tax from All India Tourist Permit vehicles with stay order in effect. The court expressed its displeasure after the bus owners informed that the states of Kerala and Tamil Nadu are collecting tax without complying with the court's interim order.

With this, Kerala and Tamil Nadu assured the Supreme Court that they will comply with the order. With this, it has been confirmed that the Kerala Tamil Nadu government will no longer collect entry tax from 'Robin' bus owners who have approached the Supreme Court.

The private bus owners claim that it is not necessary to pay taxes if permit fees are paid as per the All India Tourist Permit Act. But states including Kerala claimed that the permit fee does not include inter-state tax. 94 bus owners, including the owner of Robin bus, filed a petition against this.

The court had earlier placed an interim stay on the collection of entry tax on this petition. But the owners informed the Supreme Court that despite this order, Kerala and Tamil Nadu are charging entry tax. The petitioners told the court that the vehicles are being stopped and tax is collected even in the middle of the night and in the early morning hours and this is causing hardship to the passengers.

Senior advocate S Muralidhar, who appeared on behalf of the private vehicle owners, demanded that contempt of court action be taken against the tax collectors. Later, Kerala and Tamil Nadu announced that they will not collect the tax.