The Greater Hyderabad Cabs & Bus Operators Association (G.H.C.B.O.A.) today at a Operators Meet organized here at Savera Function Hall, Yousufguda, Hyderabad called for an indefinite strike from 5thJune as protest against the state government’s decision to impose VAT for the operators with retrospective effect for past five years. Addressing the gathering of about 250 car & bus operators Mr. N. K. Sultania, President – GHCBOA urged all small and big operators to participate in the strike. He informed that all car and bus services to corporates, IT, BPO companies, etc. will be suspended indefinitely from 5thJune 2008 till their demands are met by the Andhra Pradesh government.

Mr. Nizamuddin, General Secretary – GHCBOA said that they are forced to take this step as there was no positive response to there valid representation from the Government. Lamenting on the situation, he said that the sudden unilateral demand of the State Government’s commercial taxes department for payment of VAT w.e.f. 1.04.2003 and in some cases, 1.04.2005, will ensure that the industry will close down.

Giving details, Mr. Prabhakar Reddy, Vice President – GHCBOA informed that the industry is already registered with the Service tax department and has been collecting service tax as mandated by the law and diligently remitting the same to the Government. The move by the state government asking cab and bus operators to pay VAT tax for the past five years is unjustified and the operators cannot pay up such huge amounts.

What the state government is proposing amounts to dual taxation. This is unjust, a huge burden to the consumers / customers and will fuel inflation. The Cabs and Bus operators are already battling issues like increase in fuel costs, maintenance costs, vehicle costs, manpower, administrative costs and the imposition of taxes like Life tax on commercial vehicles in the LTT category (Only State in India to do so) and in general, the highest taxation on commercial vehicles in the country. The Cab and Bus Rental industry has approximately 51000 cabs and almost 10000 buses operational in the state of Andhra Pradesh and provides direct and indirect employment to over 10 lakh people in the state.

Mr. Nizamuddin, General Secretary – GHCBOA said, “We request the Government of Andhra Pradesh to kindly take notice of our plight and bail us out. We, the industry, will be driven to bankruptcy by the present unjust action of the Government and every day that the industry operates, it creates more liability for it. This shall force the industry to shut down. We request the Government again to kindly consider our plea and provide relief to us immediately, failing which, the industry will have no option but to shut down indefinitely from 5thJune 2008.

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