Andhra Pradesh Chief Minister N. Chandrababu Naidu has instructed all revenue-related departments in the state to start using Artificial Intelligence (AI) to find people and businesses who are not paying taxes properly. He said that using advanced technology like AI will help the government collect more revenue and stop tax cheating.
According to The Hindu Report, Mr. Naidu made this statement during a review meeting with officials from various departments that generate income for the state. He said that improving tax collection is very important for the state’s development and welfare schemes. The government has set a big target this year, it wants to collect Rs. 1,37,412 crore as its own revenue for the financial year 2024–25.
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The Chief Minister said the entire tax process from making payments to sending notices should be handled online and digitally, so it becomes more efficient and transparent. He pointed out that there should be no room for tax evasion in the system.
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As an example of how AI can help, Mr. Naidu shared a case where AI systems found over 1,000 builders who received occupancy certificates from municipal officials but had not registered for GST, which is required by law. He said no approval should be given to anyone who doesn’t have proper GST registration, and this rule should be followed strictly.
Mr. Naidu asked all departments to look for areas where tax collections are low and take steps to improve them. He also asked officials to explore new ways to increase revenue, apart from the usual methods.
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He shared that tax collections are improving, with tax revenue growing by 4.1%, and GST collections rising by 4.9%. Professional tax increased by 15.2%, and excise revenue (from alcohol and related products) went up by 24.3%. Since the new excise policy started, income from this source has increased. From October 2024 to March 2025, the state earned Rs. 4,330 crore from excise alone — a jump of 33%.
On the property tax front, the government collected Rs. 500 crore more this year compared to last year. But around Rs. 2,500 crore is still pending, especially from government-owned properties and vacant lands. Officials also noted that when the government offered a 50% interest waiver on late payments, it helped bring in Rs. 240 crore in just six days.
CM Naidu asked all departments to use technology like AI to find tax defaulters, increase collections, and help meet the revenue target. He said this is key to funding welfare programmes and ensuring the development of Andhra Pradesh.
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