PRTC owes Punjab govt ₹285 cr in road tax

Over 90% of the fleet of the Pepsu Road Transport Corporation (PRTC) is plying without paying road tax; Punjab road transport minister Raja Warring says it is matter between two government bodies

Patiala Even as the state transport department is taking action against private transporters for defaulting on road taxes and permits, the Pepsu Road Transport Corporation (PRTC), one of the state-run transport undertakings (STUs), has turned out to be major a defaulter of road tax.

The road tax from PRTC towards the Punjab govt has been pending for years; due to this, the government has also stalled a grant-in-aid of ₹267 crore allocated to PRTC. (HT Photo)

The PRTC’s tax dues are ₹285 crore and has not been paid for years. More than 90% of its total fleet of 1,113 buses are plying on roads without paying any road tax. Due to non-payment of road tax, the government has also stalled a grant-in-aid of ₹267 crore allocated to PRTC, six months ago.

“The department should also taken action against PRTC for defaulting on ₹285 crore in tax. When private buses are not allowed to operate without paying taxes, then why are such privileges being allowed to state undertakings,” a private transporter claimed.

Punjab transport minister Raja Warring said it is completely a government affair and understanding between finance and transport department. “The PRTC owes road tax towards government but at the same time, the government is yet to clear pending free-travel dues of the PRTC to the tune of ₹ ₹167 crore. Therefore, it is between two government departments and will be resolved soon,” Warring said.

Since taking charge, Warring has tightened the noose against tax defaulters and impounded and challaned over 260 buses due to non-payment of taxes, illegal permits and other documents. Following the action against private players, the department has collected nearly ₹3.65 crore as part of pending government tax.

“The corporation has been directed to pay road tax first in order to get allocated grant,” said a PRTC official. Nirmal Singh Dhaliwal, convener of PRTC-linked trade unions, however, said if the government could waive dues of the power corporation and other departments, then it should also follow the same procedure for road tax. “Not only free or concessional travel dues, the Punjab government owes PRTC ₹60 crore for providing free bus service to women,” he said.