AP Eases Tax Burden on Interstate Tourist Buses, Cuts Levy to ₹2,500

In a significant policy decision aimed at easing the financial burden on the private transport industry, the Andhra Pradesh Cabinet has approved a reduction in the tax levied on interstate tourist buses , bringing it down from ₹4,000 to ₹2,500 per seat/berth per quarter . The move is expected to improve the viability of private bus operations, encourage operators to register their vehicles within the state and strengthen Andhra Pradesh's transport ecosystem.

Welcoming the Cabinet's decision, the Andhra Pradesh Private Bus Owners Welfare Association organised a grand 'Thanksgiving Meeting' at Srujana Kalyana Avenue in Vijayawada on Tuesday. Transport, Youth Affairs and Sports Minister Mandipalli Ramprasad Reddy attended the event as the chief guest, where private bus operators expressed their appreciation for addressing one of the industry's long-pending demands.

Association representatives said the tax reduction would provide much-needed relief to operators facing increasing operational costs, including fuel prices, vehicle maintenance, insurance premiums and compliance expenses. They noted that the issue had remained unresolved for years despite repeated representations and thanked the coalition government for acting swiftly after assuming office.

The revised tax structure is also expected to make Andhra Pradesh more competitive with neighbouring states, where comparatively lower taxes had prompted some operators to register their buses outside the state. Industry stakeholders believe the latest decision could encourage more vehicles to return to Andhra Pradesh's registration system, improving regulatory oversight and boosting state revenue.

Addressing the gathering, Mandipalli Ramprasad Reddy reiterated the government's commitment to developing a modern, efficient and passenger-friendly transport sector. He said the concerns of private bus operators were taken up with the state leadership, paving the way for the Cabinet's approval of the tax cut.

The minister assured stakeholders that the government would resolve other pending issues in phases and announced plans to establish a dedicated private bus terminal under the Build-Operate-Transfer (BOT) model to improve infrastructure and operational efficiency. He also urged private operators to prioritise passenger safety , adhere to vehicle fitness standards and ensure strict compliance with transport regulations.

During the event, the minister unveiled the new logo of the Andhra Pradesh Private Bus Association . The programme was attended by Association President Gautham Kiran , transport sector representatives, association members and a large number of private bus owners, who described the tax reduction as a landmark step towards ensuring the sustainable growth of the state's private passenger transport industry.