Hyderabad Transport Department reports 2.73% revenue rise
HYDERABAD: The Transport Department has reported a 2.73 per cent increase in overall revenue for April 2025–January 2026 compared to the same period last year, despite a fall in Life Tax collections.
The department submitted a report to the state government comparing revenues between April 2024–January 2025 and April 2025–January 2026.
Life Tax collections fall over 5 per cent
Life Tax, which accounts for 73 per cent of the department’s total income and is collected during new vehicle registrations, recorded a decline of over 5 per cent.
Collections dropped from ₹4,155 crore in 2024–25 to ₹3,943.6 crore in 2025–26 a fall of ₹211.3 crore, or 5 per cent.
Officials told the government that concessions granted to electric vehicles had an impact. The waiver on Life Tax for electric vehicles rose sharply from ₹155.8 crore last year to ₹659.4 crore this year.
If the department expected ₹4,988 crore under Life Tax by January 2026, it received only ₹3,943.6 crore lower than even last year’s figures.
Traffic challan revenue jumps 153.90 per cent
Revenue from traffic challans for violations of road safety norms surged by 153.9 per cent.
Collections increased from ₹108.3 crore to ₹275crore, a rise of ₹166.7 crore. The reasons for the sharp increase remain unclear.
It is yet to be ascertained whether violations increased, enforcement intensified, or technology-enabled monitoring led to higher challan issuance.
Revenue target shortfall
The government set a revenue target of ₹7,207.4 crore for the department up to January 2026. The department achieved ₹6,057.2 crore 81 per cent of the target.
Despite the fall in Life Tax, the spike in challan revenue helped the department register an overall growth of 2.7 per cent compared to the previous year.
