Kerala private buses halt services to TN, Karnataka over unlawful tax

Mangalore Today News Network

Kochi, Nov 10, 2025: Thousands of commuters, including students and software employees, are set to be affected as nearly 600 luxury private buses operating between Kerala and neighbouring states like Tamil Nadu and Karnataka will suspend services from Monday evening.

“We are forced to suspend the operations from 6pm on Monday due to continuous harassment, seizure of vehicles, and imposition of unlawful state-level taxes and heavy fines by Tamil Nadu and Karnataka authorities,” said AJ Rijas, Kerala state president of Luxury Bus Owners Association.

According to the association, an estimated 4,000 people travel daily in these luxury buses to major hubs like Bengaluru, Chennai, Hyderabad, and Madurai. The busy Kochi-Bengaluru sector alone sees about 80 bus services each day.

The core of the dispute centres around the All India Tourist Permit (AITP) framework. Kerala bus operators argue that their AITP, issued under the Central Motor Vehicles Act, exempts them from paying any additional state taxes, provided the national permit fee is paid. Despite this, they claim Kerala-registered tourist vehicles are being stopped, heavily fined, and detained in the neighbouring states, actions they deem a clear violation of the AITP Rules.

Meanwhile, bus owners associations in Tamil Nadu, Karnataka, Andhra Pradesh, Telangana and Puducherry have also decided to suspend all inter-state services from Monday. According to the associations, the steep road taxes levied by various states have made operations financially unviable.

“I used to travel to my home and back at least thrice in a month due to the work-from-home facility allotted by my employer. We usually depend on private buses since the travel plans are often chartered at the last minute. Many like us will be hit hard by the suspension of services,” said Sangeeth S, a software employee working in Bengaluru and hailing from Kochi.

Call for min, transport commissioner to step in

“For over a year, Tamil Nadu has been collecting tax arbitrarily, causing repeated financial stress and harassment.

The situation has become untenable and unsafe due to the threat of financial loss and vehicle seizure, forcing the association to suspend services as a compelled measure, not a voluntary protest,” said Rijas.

The association appealed to the Kerala transport minister, the transport commissioner, and the Ministry of Road Transport & Highways to immediately intervene and resolve the matter, urging for a uniform implementation of the AITP framework across all southern states.

The service suspension by Kerala operators comes on the heels of a strike initiated by private bus owners in Tamil Nadu on Saturday.

The Tamil Nadu Private Omni Bus Association (TOBOA) has indefinitely suspended its 110 services to Kerala, protesting the stringent inspection drives conducted by the Kerala motor vehicles department (MVD) to curb tax evasion.

TOBOA president Anbalagan claimed the Kerala MVD is “illegally seizing buses and imposing excessive fines”, resulting in stranded passengers. This protest follows a recent MVD action in Kochi, where 30 Tamil Nadu-registered buses were seized and nearly Rs 70 lakh in fines were imposed for tax evasion.

Kerala MVD officials, however, maintain that their joint operations are necessary to ensure road safety and compliance with tax laws, targeting tax evasion as well as traffic violations like speeding and the use of air horns.

“The reciprocal suspension of services by operators in both states has created a travel deadlock, placing immense pressure on state governments to find an amicable and cooperative resolution to ensure interstate luxury bus operations can resume quickly,” said Maneesh Sasidharan, LBOA general secretary.