08 July,2011 06:37 AM IST | | Urvashi Seth
The travel industry cries foul over five-fold tax hike on tourist vehicles, even as passengers bear the brunt
Did you know that exploring Maharashtra is ten times costlier than visiting Goa, the most favoured holiday destination of the county?
With the state government increasing tax on tourist vehicles from Rs 400 to Rs 2,000 per seat per year, reducing excise refund from 12 per cent to 4 per cent on vehicle purchase and recent fuel price hikes, it has become literally impossible for people to commute.
Following the tax hike by the state government, travel associations threaten to take stern steps such as resorting to a strike to save their business
In a meeting held on Tuesday between Deputy Chief Minister Ajit Pawar and the delegates from the travel industry similar concerns were raised.
"While the government wants to have a pie of our hard earned money, it fails to realise that different taxes levied on us are bleeding the industry. It is the passengers who will have to share the burden of such astronomical tax hikes in the end," said Mohan Goyal, secretary, Federation Of Tourist Taxi Association (FOTTA).
He added that associations such as Travel Agents Association of India (TAAI) and Travel Agents Federation of India (TAFI) have decided to support the move against the recent tax hike.
"On top of boosting the fuel prices and the recent tax hike, the government has also reduced excise refund from 12 per cent to 4 per cent that has led to a rise in vehicle prices. The recent amendment in the Wages Act is also weighing heavily on our pockets," said Goyal.
"The above factors have forced us to jack up prices by almost 15 per cent. We have met the deputy CM and will meet the transport commissioner on tax hike today. This is the maximum tax being charged by a state from tourist vehicles (see box). We will take stern steps such as going on a strike, if the need arises, to save our business and retain our clients," he added.
The tax slab has been increased from Rs 300 per passenger for non-AC vehicles to Rs 1,000; for AC vehicles from Rs 400 to Rs 2,000; and for imported vehicles, tax per passenger seat is Rs 3,000. "We are already paying an annual road tax of Rs 1,600 for four-seater cars and Rs 2,400 for six-seaters.
The government is biased against us as other taxis in the state pay a minimum amount as tax," said another FOTTA member.
Frequent travellers, who hire tourist vehicles for business and private trips, have already started complaining. A four-seater Indica, which could have been hired for a day for Rs 3,000, is now available for Rs 4,000.
"This is just too much. Staying in Mumbai has already become expensive and now this added tax will weigh heavy on our pockets. Now, I think people will have no option but to use creaky public transport services as hiring a taxi is becoming increasingly unaffordable," said Reshma Maisheri, a frequent traveler to Pune.
Tax in states
Per seat per year:
Maharashtra: Rs 2,000
Goa: Rs 210
Karnataka: Rs 430
Madhya Pradesh: Rs 600
