The Excise and Taxation Department is taking a bold step towards increasing revenue and strengthening its capacity by embracing modern techniques, including the utilization of Artificial Intelligence (AI). With approval from the Cabinet, the department is set to implement the Revenue Enhancement and Capacity Augmentation project, aimed at mitigating revenue losses associated with the Goods and Services Tax (GST).
By employing cutting-edge tools and hiring experts in the field, the department aims to swiftly address tax evasion, ultimately bolstering the state’s financial resources. This project will introduce real-time data on GST defaulters, ensuring improved oversight and facilitating informed decision-making processes.
Sukhvinder Singh Sukhu, the Chief Minister, emphasized the government’s commitment to incorporating modern technologies into the functioning of government departments. The Excise and Taxation Department’s adoption of AI techniques for audit enforcement is expected to streamline data preparation, leading to the detection and prevention of tax fraud. The Chief Minister estimated that this project alone could generate an additional annual revenue of Rs. 250 crore for the state.
The department has faced challenges due to limited manpower, which has hindered the timely analysis of taxpayer data to identify tax losses. The project aims to overcome this obstacle by leveraging AI technology, enabling the swift identification of revenue leakages and providing precise information to boost the state’s GST revenue. Additionally, it will assist the state government in making informed decisions on incentive policies by analyzing periodic revenue collection patterns. Furthermore, the project will contribute to increasing voluntary tax compliance through educational initiatives for taxpayers.
Chief Minister Sukhu stated that the project would also enhance the capacity of departmental officers across core functions, promoting effective vigilance and enabling the identification of potential areas for revenue enhancement. As the project progresses, the implementation of AI technologies will further empower the department to tackle challenges more efficiently.
By embracing AI and advanced data analysis techniques, the Excise and Taxation Department is poised to revolutionize revenue collection, combat tax evasion, and streamline the decision-making process. This forward-thinking approach marks a significant step towards achieving the state government’s goal of employing modern technologies to enhance efficiency and transparency in governmental operations.