Inter-state omnibus services across South India ground to a halt on November 10, 2025, as operators from Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Kerala, and Puducherry launched a coordinated strike protesting multiple state-level road taxes imposed despite holding central All India Tourist Permits (AITP). At least 1,500 private luxury buses stayed off roads, stranding thousands of travellers reliant on the popular long-distance network, particularly during the ongoing Sabarimala pilgrimage season. The disruption stemmed from escalating enforcement actions, including heavy fines and vehicle seizures in Tamil Nadu and Karnataka on Kerala- and Tamil Nadu-registered buses.
Operators argued that the tax regime renders operations "unsustainable", with buses already paying quarterly AITP fees to the Centre—shared with states—plus home-state registration taxes, only to face additional levies when crossing borders. Recent crackdowns saw Kerala authorities detain over 30 Tamil Nadu buses on November 7, imposing fines exceeding Rs 70 lakh, while Karnataka collected Rs 1.15 crore from more than 60 vehicles in the past week. In response, Kerala's Luxury Bus Owners Association suspended services to Tamil Nadu and Karnataka from 6 pm on November 10, citing "unlawful" detentions despite valid central permits.
The conflict traces back to Tamil Nadu's earlier imposition of taxes on out-of-state buses, prompting reciprocal measures from neighbours that operators say defeat the AITP's purpose of seamless interstate travel under the Motor Vehicles Act. Associations urged central intervention for uniform implementation, warning that overlapping demands threaten the viability of private operators who fill gaps left by state-run transports.
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Amid the standoff, the Tamil Nadu Omni Bus Operators Association met the state's transport minister on November 10 to demand immediate resolution, with a government statement expected post-discussion. Similar disputes have led to short-lived strikes in past years, often resolved through negotiations, but the current multi-state escalation has heightened passenger woes.
The strike drew criticism of operators for festive-season overcharging—fares sometimes tripling—while they countered that rising fuel costs, tolls, and taxes leave slim margins. As travellers scrambled for alternatives, including trains and flights, the impasse highlighted longstanding tensions in India's fragmented interstate transport taxation framework.
With no immediate breakthrough reported, services remained suspended into the evening, affecting daily commuters, tourists, and pilgrims. Industry leaders called for a high-level meeting involving the Ministry of Road Transport and Highways to enforce AITP uniformity and prevent future disruptions across the region.
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