Liquor, land, vehicles to get costlier in Telangana as cash-strapped Congress Govt eyes additional tax revenue

Facing revenue shortfalls, the Revanth Reddy government is pushing steep hikes in land values, liquor licenses, vehicle life tax, and bus fares to raise Rs 20,000–30,000 crore by December. Citizens face higher costs as Telangana attempts to bridge its fiscal gap

Hyderabad: Facing a shortfall in tax revenue, the Revanth Reddy government is preparing to burden citizens with a series of hikes across land prices, liquor licenses, vehicle taxes, bus fares and other indirect levies. Officials have been tasked with mobilising an additional Rs 20,000 crore to Rs 30,000 crore by December-end, in what is seen as one of the most aggressive revenue drives in recent years.

Among the key measures is a steep upward revision of land values inside and outside the Outer Ring Road (ORR). Officials have already prepared the proposals and are awaiting the government’s approval. Market values are expected to go up by 20–60 per cent, directly inflating registration charges. Officials estimate that this alone could bring in nearly Rs 2,000 crore over the next four to five months.

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Liquor continues to be the government’s cash cow. With a Rs 40 hike on a full bottle and additional duties on premium beer, excise and VAT collections are projected to cross Rs 50,000 crore this fiscal. The recent notification for allocation of new liquor licenses for 2025–27 is expected to net another Rs 6,500 crore from application and license fees.

Not stopping there, the government has already increased the life tax on vehicles from 12 per cent to as high as 18 per cent. This move, which is likely to generate an additional Rs 2,000-2,500 crore this year, is in contrast to Chief Minister A Revanth Reddy‘s assurance in the Assembly earlier that no such hike would be imposed.

Public transport users are also bearing the brunt. TGSRTC has raised the monthly bus pass fee by 20–50 per cent, with ordinary passes jumping from Rs 1,150 to Rs 1,400. Festival season surcharges of up to 50 per cent on tickets have further angered commuters.

Officials have also been instructed to tap non-tax avenues. Leasing of new mines and sand quarries is under consideration, while efforts are on to revive interest in land auctions. While prime plots in core Hyderabad areas like KPHB and Gachibowli fetched huge amounts, auctions in other parts of the state failed to attract bidders.

The government is keen to achieve at least 80 per cent of its annual non-tax revenue target of Rs 31,618 crore. With the new measures, the burden on ordinary citizens and consumers is set to increase significantly, even as the government attempts to plug its widening fiscal gap.