Kozhikode: Interstate bus passengers are caught in the middle of tax disputes between states. Confusion surrounding the All India Permit is causing difficulties for travellers, as most services from Kerala run to Karnataka, Tamil Nadu, Puducherry and Hyderabad.

When buses cross the borders of neighbouring states, officials from those states’ motor vehicle departments often stop the buses, citing a lack of state permits. Similarly, Kerala also fines buses coming from other states.

Many passengers book tickets online through various websites, and it is only during the journey, when buses are stopped by authorities in neighbouring states, that they learn about these tax issues. This sometimes results in major inconvenience, including being stranded overnight on highways.

Due to repeated stoppages and fines imposed on buses without state permits, buses from Kerala had earlier suspended services for a week in protest.

According to a 2023 Central Government directive, paying a fee of ₹90,000 for three months is sufficient to obtain an All India Permit. However, South Indian states argued before the Supreme Court that this arrangement deprives them of taxes due. The Supreme Court advised the respective state high courts to take a decision on the matter.

Despite having paid the All India Permit fee, buses are still being stopped and fined when entering other states, causing serious inconvenience for passengers who urgently need to travel. Long waits on highways are a common consequence.

Kenny Jacob, a resident of Kottayam, said that while travelling even from Kottayam to Thiruvananthapuram, the motor vehicle department stopped their bus over tax issues. After waiting a long time, the bus crew arranged an alternative bus for the passengers, he added.

To resolve passengers’ difficulties, Kerala is preparing a special state tax schedule. Authorities stated that the schedule is under review and will be implemented within a week to ensure smooth travel without inconveniences.