Telangana tax revenue rises ₹12,000 crore year on year
TELANGANA: Telangana’s tax revenue has increased by about ₹12,000 crore compared to the previous year, boosting the state exchequer, officials said.
Between April and January of the current financial year, the state collected nearly ₹1.2 lakh crore through taxes. In the corresponding period of 2024–25, collections stood at ₹1.1 lakh crore.
With February and March still remaining, the total tax revenue is expected to cross ₹1.5 lakh crore, according to preliminary estimates. Last year, overall tax collections were ₹1.3 lakh crore.
Officials said the increase was driven by higher Goods and Services Tax receipts and a marginal rise in Telangana’s share in central taxes. Despite a temporary slowdown in the real estate sector due to global economic uncertainty, a gradual recovery led to an additional ₹3,800 crore from registration duties.
The state government is targeting over ₹19,000 crore from registrations this year, though officials said the figure may fall short of the target but will still exceed last year’s collections.
Tax payments typically peak in February and March, and when these are factored in, total tax revenue is likely to exceed ₹1.5 lakh crore, the finance department said. The state budget had projected ₹1.7 lakh crore in tax revenue, but officials indicated that achieving this target appears unlikely.
Under the state’s share of central taxes, Telangana had projected receipts of ₹21,195 crore this year, but collections so far are below 80 per cent. The finance department estimates a shortfall of around ₹3,000 crore.
The government had expected ₹59,704 crore in GST revenue this year by plugging leakages and curbing evasion. By the end of January, collections are expected to reach about ₹43,000 crore, the commercial taxes department said.
The state cabinet sub-committee on resource mobilisation has directed all tax departments to focus on transparency and improved compliance rather than raising tax rates.
Officials added that if the newly introduced HILT policy aimed at relocating polluting industries from within the Outer Ring Road limits in Greater Hyderabad to outside the corridor proves successful, state revenues could rise further. The additional revenue impact is expected to be clear by the end of March.
