Kochi, November 10, 2025
In a dramatic escalation of a simmering interstate tax tussle, Kerala's luxury tourist bus operators have slammed the brakes on all services to Tamil Nadu and Karnataka, effective 6 p.m. today, leaving thousands of daily commuters—from software engineers to students—scrambling for alternatives amid fears of a broader southern transport deadlock. The move, announced by the Luxury Bus Owners' Association (LBOA) Kerala State Committee on Sunday, is a direct retaliation against what operators decry as "harassment and unlawful taxation" by neighboring state authorities, despite their vehicles holding valid All India Tourist Permits (AITP) issued under the central Motor Vehicles Act.
The dispute boils down to a classic federal friction: AITP vehicles, which pay a national permit fee, are meant to be exempt from additional state-level road taxes. Yet, for over a year, Tamil Nadu has been arbitrarily slapping fines and taxes on Kerala-registered buses, while Karnataka has joined the fray with vehicle seizures and penalties. "This isn't a voluntary protest—it's a compelled suspension to protect our vehicles, drivers, and passengers from an unsafe and untenable situation," declared A.J. Rijas, LBOA State President, in a strongly worded release. He highlighted repeated detentions and "heavy-handed enforcement" that have drained operators financially, with some buses impounded for days over disputed levies.
The timeline traces back to Kerala's own crackdown three days ago, when Motor Vehicle Department (MVD) teams nabbed 28 tourist buses from Tamil Nadu and Karnataka for allegedly dodging state road taxes—despite their AITPs—raking in nearly Rs 70 lakh in fines. Tamil Nadu's Bus Owners Association (TOBOA) fired back by suspending services to Kerala on Saturday, citing "illegal seizures and excessive fines" by Kerala authorities that stranded passengers. Now, the LBOA's reciprocal halt—covering nearly 600 luxury buses on high-demand routes like Kochi-Bengaluru (80 services daily) and Kochi-Chennai—has rippled outward, with operators in Andhra Pradesh, Telangana, and Puducherry joining the fray from Monday onward.
The human cost is already mounting. An estimated 4,000 passengers rely on these air-conditioned coaches daily for work, study, and leisure, particularly techies shuttling between Kerala's coastal hubs and Bengaluru's Silicon Valley. "These buses are a lifeline for last-minute trips—trains are booked solid, and flights are pricey," lamented Sangeeth S., a Kochi-based software engineer commuting to Bengaluru, who credits flexible work-from-home policies for his frequent travel but now faces chaos. Tourism takes a hit too: Luxury operators, catering to weekend getaways to Munnar or Ooty, warn of cascading losses in an industry still rebounding from pandemic slumps. Broader economic ripples could strain supply chains, as these routes ferry not just people but perishables and parcels.
Maneesh Sasidharan, LBOA General Secretary, painted a grim picture of the standoff: "The reciprocal suspensions have created a travel deadlock, piling immense pressure on state governments for an amicable resolution." The association has fired off pleas to Kerala Transport Minister K.B. Ganesh Kumar, the state Transport Commissioner, counterparts in Tamil Nadu and Karnataka, and even the Union Ministry of Road Transport and Highways, demanding uniform enforcement of AITP rules across the south. On the other side, TOBOA President Anbalagan accused Kerala's MVD of overreach: "Their joint operations target tax evasion and violations like speeding, but the fines are excessive and buses are seized illegally." Kerala MVD officials, defending their actions, insist the drives ensure road safety and tax compliance, noting that AITP holders must still adhere to state norms when operating within borders.
This flare-up underscores deeper cracks in India's interstate transport framework, where steep road taxes—often hiked to plug fiscal gaps—clash with central permit intents. Southern states, with their dense bus networks and tourism interdependence, are ground zero: Similar skirmishes have erupted before, from Karnataka-Andhra over border checks to Tamil Nadu's past bans on out-of-state cabs. Experts like transport analyst R. Vaidyanathan argue for a "one-nation, one-permit" overhaul to preempt such escalations, warning that without it, "these disputes could choke regional mobility."
As evening rush hour looms, LBOA vows no U-turn without concessions. Minister Ganesh Kumar's office, when reached, promised "urgent tripartite talks" but offered no timeline. For now, southern skies may clear of luxury coaches, but the road to resolution remains bumpy. In a region where buses are more than transport—they're lifelines—the question hangs: Will cooler heads prevail, or will this tax tango strand the south?### South India's Bus Wars Escalate: Kerala Luxury Operators Halt Routes to Tamil Nadu and Karnataka Over 'Unlawful' Tax Row
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