Tax breaks provided for electric vehicle registrations and concessions extended to certain categories of vehicles were draining the Department of Transport’s revenue.
Tax breaks given on electric car registrations and concessions extended to certain categories of vehicles, including state corporation buses and vehicles bought under various subsidies, dragged down the transport ministry’s revenue as it missed the target by 14%.
The revenue for 2025–26 was ₹12,829.64 crore against the target of ₹15,000 crore set for the department, which is about ₹2,100 crore short. However, the revenue increased by 8.4% in 2024–25 when the department collected ₹11,744.67 crore.
The target was not met for the third year in a row. In 2024–25, the department collected ₹11,744.67 crore against a target of ₹12,500 crore.
Similarly, in 2023–24, the collections were ₹11,106.67 crore, short of the target of ₹11,500 crore. In contrast, 2022–23 was the only year in which the department exceeded its target, collecting ₹9,487.23 crore against ₹9,007 crore.
Officials said factors such as tax concessions for certain categories of vehicles and variations in vehicle registrations had an impact on revenue realization.
“Targets set for recent years were significantly higher. At the same time, tax breaks for electric vehicles and variations in vehicle registrations affected the overall revenue collection,” said an official source.
Published – 01 Apr 2026 23:16 IST
