Telangana Chief Minister Kalvakuntla Chandra Sekhar Rao had issued orders to the officials to tax every vehicle that comes from Andhra Pradesh to Telangana. CST (Central Service Tax) will be imposed on all the goods that come from Seema Andhra. Telangana government is expecting 100 Crore income from these taxes. The CST will come in to effect very soon from all the eight check posts between Telangana and Seema Andhra.

On the other side, if Seema Andhra imposes similar taxes, it is expected to get 80 Crores income in the form of taxes. Since Telangana is on 20 Crores higher side, KCR is resorting to these taxes. But the people on both the sides will bound to suffer due to price hike. Pesticides, Fertilizers, Petrol, Diesel, Natural gas, Cashew and sand are being exported from Seema Andhra to Telangana. And from Telangana, Seema Andhra is importing Cement, Maida, Cotton and beer. With these taxes, Real estate in Seema Andhra is bound to suffer while Telangana will have to pay heavy price for fuel. Private travel buses will also cost more for people now.

Former IAS Ashutosh Mishra committee which is appointed to deal with exports and imports between both the state during the bifurcation asked both the governments to negotiate and come to a conclusion regarding the taxes. But looks like Telangana government is in no mood of sitting across the table. On June 1st, Governor issued an order that there will not be any inter state tax between these states till March 2015. But Telangana orders will overwrite those orders 8 months early. Transport Associations are planning to go to the courts over this affair.