Supreme Court issues notices on taxation policy on luxury buses

New Delhi, Sep 10 (UNI) The Supreme Court today issued notices to Union Surface Transport Ministry and Tourism Ministry along with all states and Union Territories on a petition seeking directions to the respondents to frame a uniform taxation policy for tourist luxury buses plying within the territory of India.

A bench comprising Justices Arijit Pasayat and P Sathasivam issued notices on a petition filed by Sharma Transport, challenging the different taxes being levied by different states.

The petitioner contended before the court that the lack of uniform tax structure for luxury tourist buses, plying within the territory of India on the lines of national permit for goods vehicles, is violative of Articles 14 and 19(1)(g) of Indian constitution.

The petitioner also contended that the anomalous situation regarding the quantum of tax to be imposed on luxury buses plying inter-state is a matter where the Central government (Ministry of Surface Transport) in consultation with Ministry of Tourism needs to formulate the principles and the guidelines which could then be adhered to by the different states.

According to the petitioner, different tax structure being adopted by different states violates national tourism policy which has recommended a uniform tax structure for the country. Such haphazard tax structure is harming the tourism industry as well as national economy since tourism is one of the main sources of earning for Indian economy, they contended.

The petitioner has also prayed that all states and Union Territories should be directed to follow the recommendations of Union government made in the national tourism policy and refrain from levying luxury tax higher than recommended in the national tourism policy.

UNI