The Kerala Budget 2024 has proposed to lower taxes for All India Tourist Permit ( AITP ) Buses aiming to boost the local registrations. The state Finance Minister K N Balagopal presented the budget on 5th February 2024.
The current scenario in Kerala revealed a concerning trend with a significantly low number of tourist buses, operating under an All India Tourist permit, being registered within the state of Kerala. Instead, these vehicles, which should ideally be registered in Kerala, opt for states such as Nagaland and Arunachal Pradesh due to their comparatively lower taxes.
Exploiting the recently introduced rules by the Central Government regarding tourist permits, these buses continue to operate regularly in Kerala, resulting in substantial losses in tax revenue, registration fees, and fitness test charges.
In response to this issue, the Kerala government has taken appropriate measures to curb tax evasion and encourage the registration of such tourist buses within the state. As an initial step, the budget has proposed a reduction in the tax imposed on All India tourist permit buses is as follows:
| S. No | Class of vehicles | Existing quarterly rate | Proposed quarterly rate |
| 1 | All India Tourist Buses having ordinary seat | Rs.2250/seat | Rs.1500/seat |
| 2 | All India Tourist Buses having Push back seat | Rs.3000/seat | Rs.2000/seat |
| 3 | All India Tourist Buses having Sleeper berth | Rs.4000/seat | Rs.3000/berth |
Furthermore, vehicles registered in other states with an All India Tourist Permit, entering the state intermittently for tourism activities, will be required to pay one-tenth of the quarterly tax from the date of their entry for a duration of 7 days.
In cases where the bus stays in Kerala for more than 7 days, the tax will be collected on a monthly basis. To accommodate these changes, amendments will be made to the taxation Act. Regularly operating tourist buses within the state will continue to be subject to quarterly tax collection.
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