Telangana State Loses Rs 180 Crore in EV Sops

Hyderabad: The Telangana transport department has lost Rs 180 crore revenue in the first nine months of the 2025-26 financial year, largely due to tax exemptions granted to electric vehicles (EVs) as part of the government’s push for a pollution-free transport ecosystem.

According to government data, the transport department had posted Rs 5,142 crore in the first three quarters of the financial year 2025-26 compared to Rs 5,324.90 crore during the corresponding period in the previous financial year. Compared to the revenue clocked in the first three quarters in the financial year 2023-24, the department lost Rs 150 crore in revenue.

Officials attributed the decline primarily to exemptions provided to EVs to encourage their adoption and reduce vehicular pollution across the State.

Officials said that inspections during the year resulted in the collection of Rs 181 crore in penalties. Overall, the department reported a 17 per cent dip in revenue during the 2024-25 financial year, collecting Rs 5,787 crore compared to Rs 6,990 crore in 2023-24.

The revenue break-up for the current financial year which will close on March 31, 2026, includes Rs 3,611 crore from lifetime taxes, Rs 730 crore from quarterly taxes, Rs 57 crore from green tax, Rs 408 crore from fees, Rs 181 crore from inspections and Rs 153 crore from service charges.

The RTA Khairatabad, meanwhile, generated Rs 43.57 lakh through a special registration number auction held on Tuesday. Of this, the registration number TG09J9999 fetched Rs 18 lakh, while TG09K0006 was sold for Rs 7.06 lakh.