Committee recommends replacing Telangana’s three-tier tax slab for contract carriages with single tax system

By The Hindu Staff

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Committee recommends replacing Telangana’s three-tier tax slab for contract carriages with single tax system — Photo credit: The Hindu

A uniform tax of ₹1,510 per seat per quarter for State-wide permits were proposed in Telangana. The image is used for representative purposes only. | Photo Credit: NAGARA GOPAL

A committee has proposed replacing the existing three-tier tax structure for contract carriage buses in Telangana with a uniform tax of ₹1,510 per seat per quarter for State-wide permits.

Existing permit-wise tax rates

The report on ‘Rationalisation of Tax on Contract Carriage Buses Plying within Telangana’, submitted by Transport Commissioner K Ilambarithi, recommended replacing the existing permit-wise tax rates of ₹1,120 for One District Permits, ₹1,510 for Two District Permits and ₹3,285 for State Permits with a uniform rate. The proposal covers contract carriages permitted to carry more than 12 persons, excluding the driver. The committee studied and compared tax slabs of various states including Kerala, Karnataka, Maharashtra and Odisha before concluding that the recommended tax slab is “moderate” in nature.

Originally published by The Hindu on Oct 13, 2026 Read the full article at thehindu.com

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