Entry tax will jack up prices: YSRCP

“When Telangana Government has imposed entry tax to AP registered vehicles, it did not put up a strong resistance and is now contemplating to impose entry tax which will escalate the issue and in the process the prices of essential commodities will increase steeply,” Party senior leader Dr MV Mysoora Reddy told reporters here on Friday.

Setting aside egos the two Governments should try to evolve an amicable solution instead of single mindedly taking steps to fill up the coffers by imposing tax in some form or the other.

As Hyderabad is the common capital for ten years, the issue of entry tax should not arise for that period. This can be done by amending the section 72 of State Reorganisation Bill allowing free movement of vehicles between the two states.

The other way out could be through a reciprocal agreement between the two State Governments to allow vehicles to move freely in the two states for 10 years and this can be done under the provisions of Motor Vehicles Act, he said.

Instead, TDP government planning to impose tax in reply to TRS Government decision will result in increase of prices of essential commodities, he said adding that the TRS decision was challenged by Motor Vehicles Association and not the AP Government, It is unfortunate that the union minister washing his hands away stating the entry tax is a State subject, he added.