The Association of State Road Transport Undertakings on Thursday said that taxation policy is one of the issues behind the loss of bus services in major cities. They pay motor vehicle tax and passenger tax and taxes contribute close to 20% of an STU’s operating cost. However, India requires more than 3 lakh buses in cities alone. In all other cities, buses come next to walking as the most preferred mode of commute. HS Ashokanand, MD of north-east Karnataka State Transport Authority, said that there has been no increase in the fleet of buses in any state authority.

Source: Hindustan Times April 07, 2017 12:33 UTC