Kerala: Financial crisis, KSRTC to impose cess tax on tickets

THIRUVANANTHAPURAM: The Kerala State Road Transport Corporation, reeling under a heavy financial crisis, is expected to collect an additional amount of around Rs 160 crore annually by levying cess on passenger tickets.

The Congress-led UDF government passed a bill, "Kerala State Road Transport Corporation Bill 2014", approving the imposition of the cess on the tickets in the concluding session of the state assembly here yesterday. Though government had granted financial assistance for revival of the ailing state-run Corporation, more funds were needed to meet expenditure and other liabilities of KSRTC, official sources said.

The Bill was passed also considering the necessity to introduce group insurance coverage to passengers of the state carriage buses and to provide personal amenities to the passengers. Besides this, the social security measures are to be extended to the employees also who have retired or retires from the service of the Coporation, they said.

The Bill provides for levy of cess on passenger tickets ranging from Rs 15 and above beginning with one rupee with a systematic increase. It is expected that approximately Rs 160 crore can be mobilised per year, they said.

Cess of rupees two will be imposed on tickets ranging between Rs 25-Rs 49. It will be rupees three on tickets between Rs 50-Rs 74 and rupees four on those between Rs 75-99. Cess of Rs 10 will be imposed on tickets above Rs 100, the Bill said.