Tax concessions provided to electric vehicle registrations and concessions extended to certain categories of vehicles, including State corporation buses and vehicles purchased under various subsidies, dragged down the revenue of the Transport Department as it missed the target by 14%.

The revenue in 2025-2026 stood at ₹12,829.64 crore as against the target ₹15,000 crore set for the department, about ₹2,100 crore less. The revenue, however, has increased by 8.4% over 2024-2025 when the department collected ₹11,744.67 crore.

This is the third consecutive year that the target has not been met. In 2024–25, the department collected ₹11,744.67 crore as against a target of ₹12,500 crore.

Similarly in 2023–24, collections stood at ₹11,106.67 crore, falling short of the ₹11,500 crore target. In contrast, 2022–23 was the only year when the department exceeded its target, collecting ₹9,487.23 crore as against ₹9,007 crore.

Officials indicated that factors such as tax concessions for certain categories of vehicles and variations in vehicle registrations have had an impact on revenue realisation.

“The targets set for recent years have been significantly higher. At the same time, tax concessions for electric vehicles and variations in vehicle registrations have affected overall revenue collections,” an official source said.