In the fifth year of CM Dhami’s tenure, tax recovery in Uttarakhand is set for a major tech upgrade

As chief minister Pushkar Singh Dhami enters the fifth year of his tenure, the tax collection landscape in Uttarakhand is poised for a significant transformation. The state’s tax system is being enhanced with the integration of Artificial Intelligence (AI), aimed at making collections more efficient and robust. A proposal worth Rs 12 crore from the State Tax Department has received in-principle approval. The use of AI is expected to boost collections under both SGST (State Goods and Services Tax) and VAT (Value Added Tax).

According to IS Brijwal, Additional Commissioner of the State Tax Department, efforts are underway — under the chief minister’s directive — to further streamline and modernize the tax collection system. A comprehensive framework has already been prepared. While the department has already been leveraging technology, it is now preparing to implement AI-based systems. The government has given its in-principle nod to the department’s proposal, and AI-based systems will soon become a reality in the state’s revenue machinery.

Promising signs in just three months

In the first quarter of the current financial year, the department has already recorded encouraging results. SGST collections have reached Rs 2,457 crore — 22% of the annual target for FY 2025–26. VAT collections for the same period stand at Rs 658 crore, achieving 26% of the annual target. Combined, these figures show the department has achieved 23% of its total target within the first three months of the year.

Target of Rs 13,722 crore for FY 2025–26

The State Tax Department has set an ambitious revenue collection target of Rs 13,722 crore for this financial year — Rs 11,221 crore from SGST and Rs 2,501 crore from VAT. In comparison, the previous year’s target was Rs 12,703 crore (Rs 10,200 crore from SGST and Rs 2,503 crore from VAT). The department achieved 93% of the total target last year, with VAT collection even surpassing the goal by reaching 102%.

“We are strengthening the tax collection system in the interest of the state. Our goal is to ensure that the revenue collected through taxes is maximised and effectively used for public welfare initiatives," CM Dhami said.