All India Permit: Kerala, TN to step back from collecting entry tax as petitioners approach SC

New Delhi: Kerala will not levy entry tax on All India Tourist Permit or National permit (NP) vehicles registered in other states. The state gave this response in relation to the petition filed by vehicle owners in the Supreme court (SC) against the levying of entry tax. The Tamil Nadu (TN) government has also informed the SC that it will not charge entry tax from NP vehicles. With this, it is now clear that both the governments will not collect entry tax from the Robin bus owner Gireesh.

Earlier, the SC had issued an interim order restraining the collection of tax on petitions filed by various private bus owners against the collection of special entry tax by state governments. The petitioners informed the SC that the vehicles are being stopped and collected in the middle of the night and even in the early hours of the morning. This causes inconvenience for passengers too, the petitioners said. 

Senior advocate S. Muralidhar, who represented the private vehicle owners, demanded that a contempt of court action be taken against the tax collectors. The TN government informed the SC that its officials failed to implement the court’s interim order but assured that taxes will not be collected henceforth. Subsequently, the SC issued a contempt notice to the TN government but exempted the officials in question from appearing in person.

When the TN government agreed to not collect entry tax, the petitioners demanded in court that Kerala also be restrained from doing so.  Following this, senior advocate, Jayanth Muthuraj and standing counsel Nishe Rajan Sonkar, appearing for Kerala stated that the state would follow the SC’s interim order.