Bifurcation seems to have come as a blessing in disguise for the Transport Department, with its revenues going up considerably.
A major chunk of the department’s revenue comes from life tax, as, unlike before, most owners register their vehicles at various RTOs across the State.
Till January, the department collected a life tax of Rs. 684 crore, while the total revenue generated was Rs. 1,500 crore. Everyday, as many as 450 vehicles are registered in Krishna district alone, and officials say the numbers are going up.
Prior to bifurcation, most owners, especially those from Krishna district, used to register their vehicles in Hyderabad. But, since June 2, 2014 (the appointed day), majority of them have been registering vehicles at RTOs in the residuary State.
“They [owners] are worried about the need to pay entry fee for purchasing vehicles in Telangana and operating them in A.P later,” says a senior Transport Department official.
Thanks to the rise in the number of vehicle registrations and consequent increase in life tax collection, the number of automobile outlets in AP have gone up. In the last six months, nearly 70 automobile outlets have been opened in the State.
“Except for a couple of premium car brands, the rest of the outlets operating in Hyderabad have their counterparts in Vijayawada, Visakhapatnam and other districts of AP,” he adds.
“The Rs. 1,500-crore revenue generated is against the set target of Rs. 1,970. This is a growth of 20 per cent,” the official says.
