As civic poll-sop, Keshubhai reduces vehicle tax on pvt luxury buses

As civic poll-sop, Keshubhai reduces vehicle tax on pvt luxury buses
EXPRESS NEWS SERVICE

GANDHINAGAR, AUG 20: In what could be termed an election-gift to its cash-rich constituency, the Gujarat Cabinet is learnt to have decided to reduce the vehicle-tax on private luxury buses criss-crossing the State, especially in the Saurashtra region.

Within a few hours of the code of conduct for municipal elections coming into force, a meeting of the State Cabinet, held at Chief Minister Keshubhai Patel's residence recently, decided to slash the vehicle tax by 10 per cent. At present, the tax is Rs 21,000 a month per bus.

The magnitude of this figure could be gauged from the fact that there are over 9,000 private luxury buses plying in the State. According to official sources, the decision to reduce the tax, on private buses registered in Gujarat and those from outside, would cost the State exchequer around Rs 4.75 crore a month.

But, unfortunately for the ruling party, the Cabinet's decision came after the electoral code of conduct for the municipal and panchayat elections. Now, the Government would need the approval of the State Election Commission. Official sources said the Government would be writing to the Commission for its permission.

The Cabinet decision, if okayed by the State Election Commission, would bring relief to the rich private luxury bus-operators who have been at loggerheads with the State Government ever since a hike in the tax was approved by the State Assembly during its budget session.

After angry demonstrations and strikes, the bus-operators had been pressuring the Government to reduce the tax, which they said, was the highest in the country. Since the BJP came to power two years ago, the tax was hiked first from Rs. 7,000 to 14,000 and then to Rs.21,000 per month per bus. Now, with the elections to all the municipal corporations and panchayats round the corner, the government has decided to reduce the tax.