All India Tourist Permit in Kerala Illegal Says Transport Minister Antony Raju
The issuance of All India Tourist Permit in Kerala has stirred controversy, with the KSRTC accusing private bus owners of taking advantage of relaxed regulations.
In a surprise move, the Motor Vehicle Department in Kerala has announced plans to crack down on contract carriage buses operating inter-state services in the state under the guise of an All India Tourist Permit (AITP).
This decision, made during a meeting chaired by Transport Minister Antony Raju, comes as a response to what the state government views as a misinterpretation of recent changes in national permit norms.
According to officials, private bus operators have seized the opportunity presented by the recent relaxation of the All India Tourist Permit by the Central Motor Vehicles Department.
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The All India Tourist Permit Advantage
The All India Tourist Permit (AITP), issued by the Ministry of Road Transport and Highways, allows a tourist vehicle operator or owner to operate a tourist vehicle across India’s entire territory without being subject to taxes or fees imposed by the respective State or Union territory through which it travels.
According to the Motor Vehicle Department (MVD), operators have capitalized on the Central Motor Vehicles Department’s relaxed regulations regarding the All India Tourist Permit for buses.
While private bus owners argue that they are within their rights to operate under AITP, the Kerala State Government contends that this interpretation applies only to contract carriages, thus deeming their activities a violation of the Motor Vehicles Act.
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Ministry of Road Transport and Highways Advices Not to Levy State Tax for AITP Permit Holders
On August 4, 2023, the Ministry of Road Transport and Highways (MoRTH) issued a notification concerning the imposition of fees, passenger taxes, and border taxes on tourist vehicles operating under the All India Tourist Vehicles (Permit) Rules of 2023. The notification emphasized the following points:
- The All India Tourist Vehicles (Permit) Rules of 2023 were established with the aim of facilitating seamless and convenient travel for tourist vehicles throughout the nation.
- It’s important to note that the permit fees collected under Rule 3 are distributed among the States and Union Territories in the subsequent month, following the formula outlined in sub-rule (2) of Rule 3 within the All India Tourist Vehicles (Permit) Rules of 2023.
- Considering these provisions, all States and Union Territories are advised against imposing any additional forms of taxes or fees on tourist vehicles operating under valid permits issued in accordance with the All India Tourist Vehicles (Permit) Rules of 2023 across the country.
But it seems respective states are yet to comply with this order. In a similar incident, Telangana State Government stopped all buses entering the state with an All India Tourist Permit and asked them to pay state tax.
@nitin_gadkari @narendramodi is this ease of doing business sir ? After issuing all india permit and tax to tourist buses today at telangana border adilabad buses with passengers are stranded as they are insisting operators to pay state tax only and not to pay center tax. pic.twitter.com/8aVZWHuMGh
— SHUBHAM M CHAURASIA (@Shubh28101994) July 8, 2023
Impact on Kerala KSRTC
Raju underscored how contract carriage services operating under the All India Tourist Permit in Kerala are leading to revenue losses for both the Kerala State Road Transport Corporation (KSRTC).
According to him, the new amendments in the bus permit have affected the Kerala KSRTC's monopoly in inter-state services. It has also affected the tax collection of the Motor Vehicles Department (MVD).
The government previously safeguarded KSRTC by restricting private operators from providing stage carriage services within a radius of 140 kilometers.
Nevertheless, private buses now have the ability to bypass the state permits issued by MVD, thanks to the All India Tourist Vehicles (Permits) Rules of 2023.
Even in this scenario, private contract carriage buses can discreetly conduct both inter-state and intra-state services, potentially complementing the services offered by KSRTC.
Cracking Down on Non-Compliant Private Buses in Kerala
Transport Minister Raju revealed that authorities have identified buses registered in other states but are plying in Kerala. These buses get their registration in North Eastern states like Nagaland, Arunachal, etc., mainly because of lesser fee structures.
Details of 52 such vehicles have been compiled, and owners have been given a two-week window to re-register their vehicles in Kerala if they wish to continue operating in the state.
Failure to comply with this directive will result in the seizure of their vehicles. Minister Raju further asserted that the Center's notification of the All India Permit contradicts the Motor Vehicle Department Act.
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Bus Plying under All India Tourist Permit in Kerala Seized
The Motor Vehicle Department (MVD) recently halted the operations of a private contract carriage named "Robin," which was running from Pathanamthitta to Coimbatore under the authorization of an AITP.
While the officers did not discover any clear violations related to the permit, they opted to revoke the vehicle's fitness certificate, citing minor infractions.
Contract Carriage Operators Association's Stand
The Contract Carriage Operators Association (CCOA) has voiced opposition to MVD's actions, arguing that AITP offers a legitimate means for contract carriage buses to operate legally.
The body has argued that operators can legally operate buses using the All India Tourist Permit in Kerala, just like in the other states of India.
They assert that the private operator Robin was operating within lawful bounds.
Upcoming Discussion for All India Tourist Permit in Kerala
In response to the escalating situation, a meeting has been scheduled on September 12 in Thiruvananthapuram, bringing together Road Transport Officers (RTOs) and District Transport Officials to deliberate on this matter.
The introduction of the AITP has sparked a contentious debate in Kerala's transport sector.
While offering new opportunities for bus operators, officials sate that the All India Tourist Permit in Kerala poses challenges for state-owned services and tax revenue collection.
The outcome of legal discussions and court interpretations will play a pivotal role in shaping the future of inter-state travel in the state.
