CM Dhami's Innovative Leap: AI-Driven Tax Overhaul in Uttarakhand

Uttarakhand’s tax collection system stands on the brink of revolution. As Chief Minister Pushkar Singh Dhami steps into his fifth year, he brings along a promise of a technologically advanced future for the state’s revenue machinery. The plan is nothing short of groundbreaking—integrating Artificial Intelligence (AI) to boost efficiency and redefine how taxes are collected.

A Vision of Transformation

The initiative is backed by a Rs 12 crore proposal from the State Tax Department, with AI at its heart. This move not only promises a smarter system but aims to drastically enhance the collection under the State Goods and Services Tax (SGST) and the Value Added Tax (VAT). It’s a bold step towards modernization, one that has been given a green signal from the top echelons of the state’s administration.

Early Success and Clear Targets

In just the first three months of the financial year, the efforts have begun to bear fruit. The SGST collections have already touched Rs 2,457 crore, marking 22% of the annual target for FY 2025–26. Similarly, VAT collections hit Rs 658 crore, translating to 26% of their target. Combined, these figures reveal a promising 23% completion of the total target.

Ambitious Goals for FY 2025–26

The State Tax Department isn’t holding back. With a robust framework, they have set a challenging target of Rs 13,722 crore for the fiscal year—Rs 11,221 crore from SGST and Rs 2,501 crore from VAT. These figures, as compared to the previous year’s Rs 12,703 crore target, showcase an optimistic and ambitious outlook.

CM Dhami’s Strategic Outlook

Chief Minister Dhami’s commitment to public welfare shines through his strategy to strengthen the state’s revenue system. “We are determined to maximize tax revenue to support welfare initiatives,” he insists, emphasizing the dual benefit of this tech-driven approach—not just meeting but potentially exceeding revenue expectations.

A New Era Awaits

According to Times of India, the integration of AI into Uttarakhand’s tax system could set a precedent for others. As the framework is in place and the gears of change begin to turn, this could very well be the dawn of a new era for the state’s tax collection strategy, ensuring more streamlined processes and maximizing public welfare through enhanced financial strength.

The journey towards a technologically empowered Uttarakhand is well underway, promising a future where efficiency, transparency, and innovation go hand in hand.