At the end, experience matters always. When Telangana first proposed Entry Tax for all the AP vehicles coming to the state, Chandrababu Naidu cautioned that such move will be detrimental to both the sides but will impact Telangana more. But Telangana CM was adamant and went about imposing the entry tax, later Andhra Pradesh also had to follow that.

However the result of this entry tax is showing up adversely on Telangana.
The state has many manufacturing units located in and around Hyderabad, the vehicles of those are ending up paying additional 4 Crore due to double taxation.
Also, there are several tourist vehicles from Telangana going to various pilgrim places of AP like Tirupati, Simhachalam, Vijayawada etc.
This is resulting in loss to Telangana and additional burden to tourist operators of the state. In AP, Private bus operators plying vehicles from Vijayawada and Guntur to Hyderabad are at receiving end paying Rs 90 lakh more due to double taxation.
So to end up this menace, Telangana government proposed introduction of counter signature system to avoid double taxation on goods carrier vehicles. Under this system, both states will agree not to collect tax on certain number (10000 now) of vehicles plying between AP and Telangana. 10,000 vehicles of both the sides will avail this benefit.


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