Hyderabad High Court refused to extend any relief to the Bus Operators from the entry tax levied by the Telangana government. Earlier the court asked them to submit declaration and run the buses. But High Court cancelled the order now and instructed them to pay the Entry Tax.
However the court directed Telangana government not to use the money until instructions and said them to deposit the money in a separate account. The court asked both the governments to submit affidavits regarding the same.
Bus Operators and Transport company owners of Andhra Pradesh are arguing that they can not be levied Entry tax to enter the state since Hyderabad is also the capital of Andhra Pradesh till 10 years and one need not pay taxes to do business in the own state. At present, the entry tax will fetch more revenue for Telangana than Andhra Pradesh. But such move will affect Telangana in long run as the new state is a land locked state and will have to move through AP to the nearest ports.
