In the recent budget, additional service tax has been imposed on air-conditioned contract buses. Omnibus operators are agitated with this.
Omnibus operators run their services by paying quarterly tax.
Now-a-days, the bedding facilities provided in the omnibuses are even better that air-conditioned facility provided in the trains. Hence, employees in IT and other multi-national sectors, business entrepreneurs, sales representatives, and other affordable people use omnibuses to the maximum.
With the recent service tax imposed, there is a prospect of rise in the fares of omnibuses.
It is also to be noted that similar service tax has been imposed on vehicles of some industries which are used for picking up & dropping their employees.