The road transport sector, one of the largest employment generators and a major contributor to national tax revenues, had high expectations from the Union Budget 2026.

The industry was hoping for long-pending taxation reforms such as the abolition of TDS under Sections 194C and 194N, and rationalisation of presumptive taxation under Section 44AE, to provide much-needed relief to an already financially strained sector. Unfortunately, the Budget has not announced any meaningful measures for road transport. Instead, there appears to be a continued policy tilt towards railways and other modes, often at the cost of road transport. Such an imbalance could adversely impact a sector that serves as the backbone of India’s economic activity and employment. We urge policymakers to acknowledge the critical role of road transport and initiate urgent reforms to ensure its sustainability and continued contribution to national growth.”

Bal Malkit Singh
Advisor & Former President
All India Motor Transport Congress
AIMTC
M : – 9820022547