Nagaland’s tax revenue rose to INR 1,597.51 crore in FY 2025-26 as the State Taxes department targets INR 2,400 crore-plus by 2030 under its Vision 2063 roadmap.
Governor reviews State Taxes department performance
DIMAPUR — Governor of Nagaland Nand Kishore Yadav on Monday reviewed the functioning and performance of the Department of State Taxes at Lok Bhavan, Kohima, with the department reporting a significant rise in tax revenue and outlining a roadmap to substantially expand collections in the coming years.
According to a press release issued by the PRO, Lok Bhavan, the state’s total tax collection increased from INR1,427.03 crore in FY 2024-25 to INR 1,597.51 crore in FY 2025-26, registering a rise of INR 170.47 crore.
The increase was substantially higher than the previous year, when revenue had grown by INR 68.05 crore.
The department reported that tax collection during the first quarter of FY 2026-27 stood at INR 466.98 crore, an increase of INR 23.96 crore over the corresponding period of the previous financial year.
GST continued to be the largest component of the state’s tax revenue, contributing INR 1,181.88 crore, or 74 per cent, of total tax revenue in FY 2025-26. GST collection, comprising SGST and IGST, has risen from INR 187.57 crore in FY 2017-18 to INR 1,181.88 crore in FY 2025-26, representing a 530 per cent increase. GST collection for the current financial year stood at INR 450.35 crore up to July 2026.
The department’s five-year revenue trajectory showed sustained growth, with total tax revenue increasing from INR 1,122.71 crore in FY 2021-22 to INR 1,597.51 crore in FY 2025-26. The department recorded an 11.9 per cent year-on-year increase in FY 2025-26.
It also highlighted strong GST growth, stating that Nagaland recorded GST revenue growth of 37 per cent up to December 2025 and 28.4 per cent during FY 2025-26, both higher than the corresponding all-India averages cited in the presentation.
The department currently has 11,592 active registered taxpayers across four zones—Dimapur, Kohima, Mokokchung and Chümoukedima.
Its core functions include taxpayer registration, ensuring timely filing and payment of taxes, scrutiny of returns, audit, enforcement, adjudication and recovery, appeals, refunds, and tax education and awareness.
During the review, the department outlined several measures undertaken to strengthen tax administration and improve compliance.
These include the GST Returns and Adjudication Management System (G-RAMS), online Tax Clearance Certificate (TCC) applications, online registration and payment of Professional Tax, the Nagaland GST Analytics and Intelligence Network (N-GAIN), GST awareness campaigns, market surveys, compliance checks, and GST Registration Data Cleansing–Compliance Assessment & Market Survey (GRDC-CAMS).
Enforcement efforts include inspection drives against fake invoices and registrations, inventory checks, and the opening of a counter at the Railway Parcel Office to monitor the movement of goods.
The department also emphasised closer coordination between Central GST and State GST authorities.
Among its major achievements, the department highlighted the development of an in-house digital Professional Tax platform, recovery of INR 17 crore in petroleum arrears as of August 6, 2026, and Nagaland’s ranking first in the Northeast and 16th in India for the launch of Biometric Aadhaar Authentication Registration.
The department, however, identified several operational challenges, including shortage of manpower, the need for continuous upgrading of IT infrastructure, increasing workload arising from taxpayer registrations and return filings, and the growing volume of GST data requiring scrutiny and risk assessment.
Enforcement challenges include identifying unregistered taxpayers and cases of tax evasion, conducting field verification of high-risk taxpayers, and monitoring works contracts, interstate transactions and other revenue-sensitive sectors.
The department also stressed the need to overcome the historical resistance to payment of taxes and proposed making tax compliance a “people’s movement”.
Under its ‘Vision 2063 and Beyond’, the department envisages a robust, transparent and dynamic revenue ecosystem aimed at fostering voluntary compliance, driving innovation, strengthening governance and enabling sustainable growth.
It has set revenue targets of INR 2,400 crore-plus by 2030, INR 5,000 crore-plus by 2038, INR 11,000 crore-plus by 2047 and INR 50,000 crore-plus by 2063.
To achieve these milestones, the department identified seven key growth drivers: expansion and restructuring of the department; development of state-of-the-art IT infrastructure; constitution of a state revenue board; training and capacity building; making tax compliance a people’s movement; establishment of a legal cell; and provision of basic conveyance and accommodation support for officers and staff.
Finance Commissioner Kesonyu Yhome and other officials of the State Taxes department attended the meeting.