Private Volvo buses entering state to pay tax

Shimla, May 18

The state government has decided to impose a tax of Rs 9 lakh per annum on private Volvo buses entering the state. “For the past 15 years, most of these private buses have been evading tax. Now, all these buses will have to pay a tax of Rs 9 lakh per annum to the government,” said Transport Minister Mukesh Agnihotri while addressing mediapersons here today.

He said, “The tax will be Rs 75,000 on a monthly basis and and Rs 5,000 on a daily basis.”.

HRTC making losses on 94% routes

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• Private Volvo buses have been hurting the HRTC and evading tax for long
• The HRTC making losses on 94 per cent of total 3,719 routes, said Agnihotri
• The HRTC’s monthly income is Rs 65 crore while the expenditure is Rs 134 crore
• The shortfall of Rs 69 crore is being met through grants from the government
• The total loss has mounted to Rs 1,355 crore
• Of 3,142 HRTC buses, 1,199 have zero book value
• The HRTC to add 600 buses to its fleet by year end

Agnihotri said that the government decided the tax amount on the basis of a judgment passed by the Tamil Nadu High Court, fixing the tax amount at Rs 75,000 per month. “These buses have been hurting Himachal Road Transport Corporation (HRTC). There’s no level-playing field. HRTC buses follow all rules, but the private Volvo buses don’t follow any norms,” he added. Around 200 to 250 private Volvo buses are plying in the state.

Agnihotri said that 94 per cent of the total 3,719 HRTC routes were loss making. “Our monthly income is Rs 65 crore while the expenditure is Rs 134 crore. The shortfall of Rs 69 crore is met by grants from the government. The total loss has mounted to Rs 1,355 crore, “ he added.

He said that the government had sought suggestions from major HRTC employee unions on how to cut down losses and how to enhance income. “We have had discussions with these unions over the past two days. Besides, we have also asked our drivers and conductors to give feedback on routes where they hardly get any passengers and are full of black spots,” he added.

Agnihotri said that the HRTC would add around 600 buses to its fleet by the year end. “Currently, the HRTC has 3,142 buses in its fleet. Out of this, around 1,199 are of zero book value and 369 buses need to be taken off road immediately,” he added.

He said, “We have already bought 150 diesel buses and tenders have been floated for 75 electric buses. Also, 225 electric buses and 100 diesel buses will be bought this year.”

The minister said that the government had been looking into the grievances of HRTC employees and pensioners sympathetically. “We have implemented the old pension scheme for HRTC employees. Also, we are trying to ensure that the employees get their salaries before the seventhday of every month. We are trying to clear their pending dues as early as possible,” he added.