CM advocates use of AI to combat tax evasion

Chief Minister N Chandrababu Naidu stressed the need for increased revenue generation and strict tax collection during a review meeting with officials from revenue-generating departments held at the State Secretariat on Wednesday. He urged officials to focus on identifying new income sources, addressing low revenue generation areas, and ensuring that all tax-related processes are streamlined through technology.
The Chief Minister is keen on digitising the entire tax collection process, including payments, receipts, and notices. He highlighted the role of Artificial Intelligence (AI) in identifying tax evaders, citing a recent example where AI, through occupancy certificates issued by the Municipality Department, flagged over 1,000 builders who had not registered themselves. Naidu instructed officials to ensure that the state only grants approvals to entities with valid GST registrations and advocated for the use of AI to detect tax evasion across all departments.
Underlining the government’s stance, Chandrababu clarified that, unlike previous administrations, the TDP-led NDA government aims to facilitate tax compliance without harassing traders.
He directed officials to work closely with the business community, ensuring that all taxes are paid while also promoting the ease of tax-related processes through technology.
The CM also stressed the importance of interlinking data from various departments, such as the GST portal, the State Data Centre, and the Andhra Pradesh Commercial Taxes Department (APCTD), to facilitate better tax collection.
He suggested that AI could play a key role in automating notices to taxpayers and addressing grievances, further accelerating the official machinery.
The Chief Minister set a revenue target of Rs 1,37,412 crore for the state in the current financial year, emphasising the need for 100 per cent target achievement. While the State has seen a 2.2 per cent growth in its overall revenue for the 2024-25 fiscal compared to the previous year, Naidu noted that non-tax revenue is still below expectations. Tax revenue, however, showed growth, with GST up by 4.9 per cent, professional taxes by 15.2per cent, and excise revenue by an impressive 24.3per cent. Notably, the state recorded a 33 per cent increase in excise revenue from October 2024 to March 2025, with a total of Rs 4,330 crore collected during this period.
In addition to this, the Municipal department also saw a Rs 500-crore increase in revenue for 2024-25 compared to the previous fiscal year. However, Chandrababu pointed out that tax dues amounting to Rs 2,500 crore remain pending, particularly concerning taxes on Central and State properties and vacant lands.
Officials shared that a significant improvement in property tax collection was achieved after the announcement of a 50% interest subsidy in March, with Rs 240 crore collected in just six days.
The Chief Minister’s focus on integrating AI technology aims to modernise tax administration and increase compliance, ensuring that the state meets its revenue targets while fostering a more efficient