Covid-hit: About 15K buses surrender permits in UP

LUCKNOW : Hit by loss of business due to Covid-19, about 15,000 buses and a few thousand other commercial vehicles have surrendered their permits in Uttar Pradesh to save on payment of tax to the government, transport department sources said. A bus has to pay around Rs 6,000 per month as tax .

As the ‘unlock’ phases progressed, some transporters got their permits released but majority of them have not yet applied for release of their vehicle permits.

“As many as 14,311 buses surrendered their permits in June as soon as the transport department offices opened after two months of lockdown,” sources said.

These vehicles also included permits for 2,100 buses surrendered by the UP State Road Transport Corporation (UPSRTC) on the same ground.

“In majority of cases, transporters/owners cited loss of business due to Covid as the main reason for surrendering their vehicle permits,” the sources disclosed.

Though economic activities are getting back to normal in the state, transporters have got only 6,800 bus permits released so far and the rest, more than 8,000 permits, still remain surrendered with the transport department.

“Even the UPSRTC has sought release of permits of only 900 buses so far,” the sources said. According to them, there were around 2,000 vehicles, including trucks, taxis etc that were also surrendered permits.

With coronavirus scare on mind many people, including tourists, are avoiding using public transport, resulting in reduced trips of buses and low load factor (low seat occupancy), thus causing losses for transporters.

“Even the UPSRTC is suffering losses because of reduced number of passengers and poor load factor forcing it to withhold or curtail operations,” sources said.

Surrendering permits temporarily to the transport department enables transporters to avoid paying tax for the period during which their permits remain surrendered.

They have the option to get the permit released and start operations whenever they wish to.

UPSRTC has already sought an exemption from liability of paying Rs 40 crore tax for the lockdown period in April and May even as the transport department’s proposal for waiving tax of all other commercial vehicles for the lockdown period is also under consideration of the government.