AP CM Chandrababu Naidu Cracks Down on Tax Evasion, Pushes for Smarter Revenue Strategies

Andhra Pradesh Chief Minister N. Chandrababu Naidu has made it clear that tax evasion will no longer be overlooked in Andhra Pradesh. In a key review meeting with officials from revenue-generating departments at the Secretariat, he instructed them to identify and close every loophole that allows tax dodgers to slip through. Those who harm state revenues by manipulating the system will face firm action.
While insisting on strong enforcement, Naidu was equally clear that tax collection must be fair. He said businesses and individual taxpayers should not be subjected to harassment. Instead, officials should focus on raising awareness about tax responsibilities and building cooperation through better communication.

He also asked departments to analyse tax records going back to 2017. The government will reconsider any ongoing incentives that benefit tax evaders. Naidu added that public opinion on how taxes are collected will play a role in refining the system. For this coalition government, he said, earning public trust is as important as achieving financial targets.

Officials informed the Chief Minister that the projected revenue for the 2025 to 2026 financial year stands at ₹1.24 lakh crore. Naidu noted that a healthy revenue stream is essential for both development projects and welfare schemes. He pointed out that the current financial challenges can be addressed only if the errors made by the previous government are corrected. Without reforms, he warned, the state would remain financially stuck.

Districts That Delivered Results
During a video conference with joint commissioners from various districts, the chief minister reviewed GST and commercial tax collections. He praised the teams from Chittoor, Kurnool, Kakinada, Anantapur, and Nellore for their improved results. He also urged urban centers like Visakhapatnam and Vijayawada to step up and contribute more significantly to state finances.

Uptick in Collections
The numbers shared during the meeting show progress. The Stamps and Registrations Department collected ₹906.12 crore in April 2025 and ₹916 crore in May. Last year, the same months brought in ₹663.29 crore and ₹583 crore. GST and commercial tax collections have grown by 5.71 percent. The department has set a target of ₹43,020 crore for the current year.
Officials also spoke about the impact of the new liquor policy, which is expected to add ₹2,432 crore to the state’s excise revenue. Naidu directed them to tighten oversight under the new system to ensure that the expected gains are fully realized.

Technology as a Revenue Multiplier
The chief minister encouraged the use of technology to improve transparency and efficiency. He asked the Mines Department to use satellite data to track mineral and sand excavation more accurately. This move, he said, could boost revenue by up to 40 percent. He also instructed the Forest Department to study global market prices for red sandalwood and use that data to maximize returns.

Performance Will Decide Postings
Naidu was firm that only capable and results-driven officers should be assigned to leadership roles in key revenue departments. Competence and track record, not just seniority, should guide appointments. He stressed that citizen-facing services like revenue and registration must become more user-friendly. He also encouraged departments to explore new and innovative ways to generate income for the state.

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