With Andhra Pradesh resorting to entry tax on Telangana vehicles for balanced Taxation, both the Telugu States have imposed entry tax on each other’s vehicles making sure that the transportation cost to jump 20 per cent in a year. The common man is obvious to suffer in this Tax war between both the states. Sources say that Rice and vegetable suppliers from Vijayawada increased delivery cost by 5 percent.
The price rise is still not visible in many commodities but will slowly show up according to the experts. The industry is concentrated in and around Hyderabad while 55 per cent of the it is consumed by AP and the price hike is unavoidable. Bus Operators on both the sides increased their prices with AP suffering most since more people come there to Hyderabad.
AP exports raw goods to Telangana, finished goods, machinery, turmeric and cotton is being exported to AP by Telangana. Experts say that this move will hit Telangana most in the long run since the state is a land locked one and all its exports have to go to nearest ports through Andhra Pradesh.
