Finance Department objects to RTCs tax moves

HYDERABAD: The finance department is learnt to have raised some objection to waiving of motor vehicle tax to the tune of Rs 450 crore payable by the State Road Transport Corporation on the ground that the government's financial condition is bad.The country's biggest public sector transport corporation, which is facing a major financial crisis and is not in a position even to pay salaries for November, has sent an SOS to the government and has sought the MV tax waiver to tide over the crisis.RTC officials have been eagerly awaiting issuance of a GO on waiver as promised during the talks with union leaders before they called off the Sakala Janula Samme.Finance minister Anam Ramanarayana Reddy and transport minister Botcha Satyanarayana announced at the introduction of Garuda Plus and multiaxle buses here recently that they would waive the tax. But the RTC has not received any GO till now. According to sources, the MV tax waiver file has been pending with the finance department for the past few days.The the state government has released till now only Rs 100 crore out of Rs 700 crore due towards bus pass concession reimbursement to the RTC.The government usually releases Rs 700 crore towards bus passes but actually pays the RTC only Rs 250 crore after deducting Rs 450 crore towards MV tax.RTC officials have urged the government to release the balance of Rs 600 crore without deducting the MV tax since the government has already promised to waive the MV tax of Rs 450 crore. They hope that if the government waives the tax and reimburses Rs 600 crore on bus passes, the corporation would able to manage its affairs for another couple of months."We are waiting for the GO waiving MV tax but we do not know when it will be issued," RTC financial advisor K Nageswara Rao said.