2,600 buses off in Punjab if demands not met

The operators demand increase in fare, reduction of value-added tax on diesel, reduction in motor vehicle tax, etc

Reeling under high operational cost, low occupancy and low income, private bus operators in Punjab under the guidance of the Punjab motor union threatened to stop plying about 2,600 buses from July 1 if their demands are not met.The operators demand increase in fare, reduction of value-added tax (VAT) on diesel, reduction in motor vehicle tax, etc.

Speaking to Business Standard, the Rajinder Singh Bajwa, secretary of the Punjab motor union, said, "The rise in diesel price has brought the transporters at the brink of disaster. Since January 2013, diesel prices has risen by Rs 10.36 a litre but there were no changes made in the bus fare controlled by the state government. The last revision was done in June 2013 when the bus fare was hiked from 79 paise a km to 83 paise a km. The latest increase in prices have badly hit the transporters and bus operators, in particular. This industry is already facing a slump due to an increase in operational cost, but the latest price has forced people to close down this business. So, in view of rising diesel cost and other costs, we demanded from the state government to increase the fare to 93 paise a km."

He added, "In the last few years, the cost of chassis, body fabrication, tyres/tubes, insurance, toll tax and other operational inputs has risen manifold. Low occupancy, increase in the number of road services due to grant to large number of new permits have made bus operation a losing business. Above all, occupancy has decreased due to increase in new permits. As a result, bus operators are likely to close down their business if government does not come forward to help them. In addition to increased bus permit, liberal grant of mini bus permits, operation of other passenger vehicle like illegal plying of auto rickshaw has further affected the business."

On being asked about the demand, he said, "We want the motor vehicle tax to be reduced from Rs 3 a km to Rs . 2 a Km. Secondly, VAT on diesel should be reduced so that prices come down as Punjab charges 12.34 per cent VAT on diesel, while neighbouring Haryana charges only eight per cent. Thirdly, toll tax collection should be stopped as bus operators are already paying motor vehicle tax and VAT on Diesel."