Impact of motor vehicle taxation policy on the financial viability of STUs in India

Besides the provision of timely, adequate and efficient transport service to the travelling public, the State Transport Undertakings (STUs) are contributing substantially to the exchequer of both the Central and State governments in the form of various taxes. Further, they are undertaking many social responsibilities such as the provision of transport either free of cost or at a concessional fare to certain sections of the public and the operation of public conveyances on uneconomical schedules in the interest of public from the remote areas.