With Telangana adamant about the stand over the entry tax levied on the vehicles entering Telangana even despite repeated appeals made by the A.P. government and private bus operators, Andhra Pradesh Government has retaliated with introducing motor vehicle tax on transport vehicles entering the State. The move by AP Govt will push the prices of all essential commodities including fruits, milk, vegetables and rice.

Telangana now stands to lose more considering the vehicles movement from Karimnagar carrying iron ore to Visakhapatnam, Tamil Nadu and Karnataka, granite to Krishnapatnam Port and heavy engineering equipment, plastic and pharma ingredients going out of the state.

From different parts of AP, transport vehicles bring fruits, milk, vegetables and rice into Telangana. Apart from these, limestone for all the cement plants comes from AP.

A senior officer from AP Govt stated that revenue would be about Rs. 60 crore a year if the MV tax is imposed otherwise a loss of Rs 480 crore a year would occur. The Government is expected to issue the order of the MV Tax on Thursday.