At the
end, experience matters always. When Telangana first proposed Entry Tax for all
the AP vehicles coming to the state, Chandrababu Naidu cautioned that such move
will be detrimental to both the sides but will impact Telangana more. But
Telangana CM was adamant and went about imposing the entry tax, later Andhra
Pradesh also had to follow that.
However
the result of this entry tax is showing up adversely on Telangana.
The
state has many manufacturing units located in and around Hyderabad, the
vehicles of those are ending up paying additional 4 Crore due to double
taxation.
Also,
there are several tourist vehicles from Telangana going to various pilgrim
places of AP like Tirupati, Simhachalam, Vijayawada etc.
This
is resulting in loss to Telangana and additional burden to tourist operators of
the state. In AP, Private bus operators plying vehicles from Vijayawada and
Guntur to Hyderabad are at receiving end paying Rs 90 lakh more due to double
taxation.
So
to end up this menace, Telangana government proposed introduction of counter
signature system to avoid double taxation on goods carrier vehicles. Under this
system, both states will agree not to collect tax on certain number (10000 now)
of vehicles plying between AP and Telangana. 10,000 vehicles of both the sides
will avail this benefit.
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