In what is being seen an indication of relations between the two states finally thawing, sources say that Andhra Pradesh and Telangana would be soon signing a pact for avoiding double taxation regarding commercial and goods vehicles. The Telangana government has reportedly proposed starting counter signature system for avoiding double taxation on goods carriers.
According to this, both states will not be agreeing for collecting taxes on a certain number of vehicles plying between the states of AP and Telangana. This applies to around 10,000 vehicles from Telangana to AP followed by an equal number of AP vehicles which will be exempted from paying double taxes.
Telangana had imposed a separate tax on all vehicles
Telangana had imposed a separate tax on all vehicles entering TS three months ago while AP also retaliated by imposing taxes on Telangana vehicles. Now Telangana government has reportedly found that Telangana vehicles are the ones which are suffering more of financial loss due to this double taxation.
Telangana vehicles are reportedly paying an additional Rs 4 crore per month as many manufacturing units are located in and around Hyderabad, while more from Telangana visit pilgrims like Tirupati, Srisailam, Vijayawada, Annavaram and Simhachalam rather than those from AP to temples in TS such as Vemulawada, Yadagirigutta, and Basara.
