Inter-State Omni Buses to Halt Operations Across South India Over Tax Disputes

Chennai | November 10, 2025 Inter-state omni bus services across South India are set to come to a standstill from today as operators in Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Kerala, and Puducherry launch a coordinated strike. The move comes in protest against what bus associations call “unfair and unsustainable” road tax levies imposed by individual states. At least 1,500 omni buses are expected to remain off the roads, severely affecting passengers who rely on private long-distance bus services for travel between southern states. Bus operators argue that the problem arises from multiple states imposing road taxes on vehicles that already hold All India Permits (AIP), which are issued by the Central Government and recognized nationwide. The Tamil Nadu Omni Bus Operators Association has described the current tax structure as financially unsustainable, noting that operators pay both a “home state” tax in the state where their buses are registered and additional taxes when traveling through other states. “Besides the All India Permit, which the Centre shares with states, we already pay ‘home tax.’ When other states levy additional road taxes, it becomes unviable for operators,” a member of the association told reporters. The dispute initially arose in Tamil Nadu, which had imposed road taxes on inter-state buses. With other southern states following suit, bus associations argue that these extra state-level taxes undermine the purpose of the All India Permit system and threaten the viability of private inter-state services. The Tamil Nadu Omni Bus Operators Association is scheduled to meet the State Transport Minister today to seek an immediate resolution. The state government is expected to release a statement after the discussions. The protest comes amid criticism of bus operators for allegedly overcharging passengers, especially during festive seasons, when fares often rise two to three times. Operators defend themselves, citing rising fuel costs, tolls, and taxes that make running long-distance services increasingly difficult. In Kerala, the Luxury Bus Owners Association, State Committee announced that inter-state tourist bus services from Kerala to Tamil Nadu and Karnataka will be suspended starting at 6:00 pm on Monday. Association President AJ Rijas explained that buses holding All India Tourist Permits (AITPs) have faced fines, unlawful state taxes, and even seizure by authorities in neighboring states. General Secretary Maneesh Sasidharan added that despite having valid permits under the Central Government’s Motor Vehicles Act, Kerala buses continue to be stopped, fined, and detained in Tamil Nadu and Karnataka. The strike highlights ongoing tensions between state authorities and private bus operators over inter-state taxation and raises concerns about travel disruptions for passengers across South India. Operators hope for a quick resolution that respects the All India Permit system and ensures smooth operations in the future. Inter-State Omni Buses To Stay Off Roads Across South India Over Tax Disputes Inter-state omni bus services in South India are set to halt from today as operators in Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Kerala, and Puducherry join a coordinated strike over high and overlapping road taxes. At least 1,500 buses will remain off the roads, affecting passengers who rely on private long-distance services across southern states. Bus operators say the issue arises from multiple states imposing taxes on buses that already hold All India Permits (AIP) issued by the Central Government. The Tamil Nadu Omni Bus Operators Association described the taxes as “unsustainable and unviable”, noting that operators already pay “home state” taxes in addition to extra levies in other states. The strike follows disputes originating in Tamil Nadu, with other states adopting similar tax practices, which operators argue undermine the All India Permit system. The association is scheduled to meet the State Transport Minister today to seek a resolution, with the government expected to release a statement afterward. The protest coincides with criticism of bus operators for high fares during festive seasons. Operators argue that fuel costs, tolls, and taxes make operations difficult. In Kerala, the Luxury Bus Owners Association announced suspension of inter-state tourist services to Tamil Nadu and Karnataka, citing fines, unlawful taxes, and bus detentions despite valid permits. The strike highlights tensions between state authorities and private operators and underscores the financial pressures faced by the inter-state bus industry.