School buses get over 90% cut in tax

Regional Transport Officer Arun Yeola said they had a system of giving a two-third tax exemption for school buses earlier,but it was not a significant amount. “Later,it was felt that if these buses have to be promoted,a larger exemption is needed. There are various kinds of tax slabs for various vehicles; for example,if a 20-seat vehicle had to pay Rs 1,700-1,900 a seat as tax,it would amount to more than Rs 30,000 a year. Under the new norms,it will be Rs 100 a seat,which will be just Rs 2,000 a year.”

He said the regulations also ensure that the school bus taxes would not change even if the taxes of other vehicles are increased as any tax above Rs 100 would be exempted. For availing this facility,the buses should have an exclusive school bus permit and not just a contract carriage permit.

School bus operator Ravi Sawant said he would get a cut of at least Rs 4-5 lakhs in taxes following the exemption. “I run about 80 school buses in the Pimpri-Chinchwad area; this is really a huge benefit for people like us.”

Bus owners in the city welcomed the development,but said there should be more promotion of the scheme. Maharashtra Bus Owners Association president Nana Shirsagar said the authorities had become serious about school transportation after the Navi Mumbai accident. “Also,this provision will end the monopoly of buses run by schools,as people from outside can also come forward in large numbers to ferry schoolkids.”

Prashant Inamdar of Pedestrian First said more than awareness,implementation will decide if ground realities would change or not. “The RTO and Traffic branch need to meet the transport operators to make them aware of the provisions. Violators need to be fined and strict monitoring is needed. As of now,no deadlines have been given for transport operators to obtain the contract carriage licence,without which any such vehicle will be illegal.”