VIJAYAWADA: Chief Minister N Chandrababu Naidu has made it clear that evading taxes while doing business in the State will no longer be tolerated. He directed officials to close all loopholes that enable tax evasion, and warned that stringent action will be taken against those who attempt to exploit loopholes in the system to hit government revenue.
In a review meeting held at the State Secretariat with revenue-generating departments on Wednesday, he issued key directives to officials regarding revenue targets. He also made it clear that traders and taxpayers should not be subjected to harassment during tax collection, and instructed that efforts must be made to raise awareness among them about tax obligations.
Naidu advised officials to analyse tax payment data dating back to 2017, and said the government will reconsider the incentives currently being offered to tax evaders. He also said public opinion will be gathered regarding the tax collection process by government departments, stressing that public satisfaction is essential for the coalition government. They informed him that the estimated revenue for 2025-26 stands at Rs 1.24 lakh crore.
Naidu acknowledged that the State is currently facing financial difficulties, and said these issues can be resolved only by correcting the missteps taken by the previous government. Otherwise, he cautioned, the State’s finances will remain in perpetual distress. He stressed the importance of cities like Visakhapatnam and Vijayawada contributing more significantly to the State’s revenues.
The officials informed Naidu that compared to the previous year, revenue collections have increased. In the Stamps and Registrations Department, the revenue stood at Rs 906.12 crore in April 2025, and Rs 916 crore in May. They also reported a steady rise in GST revenue, and informed that GST and commercial tax collections have grown by 5.71%. The department has set a target of Rs 43,020 crore for GST and commercial tax revenue for the current fiscal. Naidu directed officials to strengthen the excise system through the new liquor policy. The officials explained that the new policy is expected to generate an additional Rs 2,432 crore.