THIRUVANTHAPURAM: The Kerala State Private Bus Operators Federation has threatened to suspend services and go on an agitation if the Government fails to concede to its demands.

Federation general secretary Lawrence Babu told reporters here on Tuesday evening that a fare hike alone would not solve the problems faced by the industry.

The federation had submitted a charter of demands to the Government. As per the understanding between the federation and the Government, it was decided that students should pay 25 per cent of the fares.

Now it has come down to 16 per cent . The federation has called for a thorough revamp of the student concession package.

The Government should stop issuing new permits through total nationalisation of routes. The former Government had increased the sales tax on diesel from 17 per cent to 24 per cent. The Government should reduce the sales tax to 12 per cent. Bus fares should be revised in proportion to the increase in operational cost. A regulatory committee should be formed as suggested by the K.V. Ravindran Nair Commission.

The federation has decided to stage a dharna in front of the Secretariat on Wednesday in protest against the price hike.

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