Udaipur, Oct 24, 2025 -  In Udaipur and across Rajasthan, most private tourist buses with all-India permits now carry registration numbers from North-East states like AR (Arunachal Pradesh), NL (Nagaland), TR (Tripura), or from neighbouring Madhya Pradesh (MP). This preference is not owing to any particular affinity for these States but is driven by the mathematics of cost and profit in the business.

Cost Factor Behind North-East Registrations

In Rajasthan, tourist bus operators have to pay around Rs 37,000 per month as permit tax. In contrast, in North-East States such as Arunachal Pradesh and Nagaland, the same tax for the entire year is only around Rs 14,000. Meanwhile, an all-India permit costs approximately Rs 3 lakh everywhere. Similarly, neighbouring Madhya Pradesh charges Rs 10,000 per month plus the all-India permit fee of around Rs 3 lakh. In States like Bihar and Chhattisgarh, monthly taxes are about Rs 7,000, plus the all-India permit fee of roughly Rs 3 lakh. This makes operating a tourist bus in Rajasthan significantly more expensive.

Understanding the Numbers

In Rajasthan: Monthly tax Rs 37,000 → Annual Rs 4,50,000, plus all-India permit Rs 3 lakh → total expense per bus ≈ Rs 7,50,000.

In North-East States: Annual tax Rs 14,000, plus all-India permit Rs 3 lakh → total expense ≈ Rs 3–3.25 lakh.

In Madhya Pradesh: Monthly tax Rs 10,000, plus all-India permit Rs 3 lakh → total ≈ Rs 4.25 lakh.

Clearly, registering a bus in Rajasthan costs much more than in North-East or neighbouring States like MP, Bihar and Jharkhand.

Policy Concerns

The Rajasthan Transport Department’s policy is against the principle of “One Nation, One Tax” and is disadvantaging local bus operators. This policy causes losses not only for operators but also reduces revenue for the Rajasthan State Transport Corporation.

Speaking to UdaipurTimes, Madan Menaria, president of the Udaipur Tourist Bus Service Society, said, "Any businessman will naturally choose the path where he gains the most. We want Rajasthan’s revenue to remain intact, so we urge the government to set competitive fees comparable to other States. Currently, even Arunachal-registered vehicles are being noticed here, despite the MV Act clearly stating that permits from any State are valid across the country."

PM’s Scheme Not Beneficial

The Prime Minister’s announcement allows nationwide travel with an annual fee of Rs 3 lakh, but owing to home-State tax requirements, operators do not find this scheme beneficial. States like Andhra Pradesh, Himachal Pradesh and Telangana have not implemented the Central scheme at all.

How Operators Bypass High Taxes

Transport rules allow vehicles to be registered in any State, enabling operators to register in States with lower taxes. To do this, they must maintain a local office in the State of registration, usually a small rented office, which makes the process legally valid.

According to Menaria, Udaipur has approximately 250 tourist buses, of which at least 50 are registered in North-East or neighbouring MP States. Menaria added that appeals have been made to the Chief Minister, Transport Minister and Tourism Minister, but no solution has been found yet.

Local bus operator Ugam Singh Vaghela said that Rajasthan government must take note so that buses are registered within the State, solving operators’ problems and increasing State revenue. Owing to higher registration fees in Rajasthan, operators often prefer registering in nearby MP instead of paying taxes or EMIs in Rajasthan.

Nirmal Bhandari suggested that adopting a uniform “One Nation, One Tax” policy across all States would solve this problem, curb corruption, and prevent operators from seeking registrations in other States.

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