Haryana to strengthen revenue system by expanding tax base, not by raising rates: CM

CHANDIGARH, Sep 30 : Chief Minister Nayab Singh Saini on Wednesday said that the goal of strengthening Haryana's revenue system will be achieved not by increasing tax rates, but by expanding the tax base, improving compliance, curbing revenue leakages and making effective use of modern technology.

The government's clear objective is to enhance the state's fiscal capacity without imposing any additional burden on honest taxpayers, Saini said, addressing the inaugural session of a conference here organised to analyse and strengthen 'Haryana's Own Tax Revenue System' for Viksit Haryana 2047.

The conference was organised by the Swarna Jayanti Haryana Institute for Fiscal Management (SJHIFM).

Chief Economic Adviser to the Government of India Dr V Anantha Nageswaran, Haryana's Additional Chief Secretary, Finance Department, Arun Gupta, along with policymakers, tax administrators, economists, academicians and technical experts, participated in the conference.

Saini said the ultimate objective of a strong revenue system is not merely to mobilise more revenue, but to use it to provide better roads, schools, hospitals and public services, thereby improving the lives of the people.

He said it is the government's priority to ensure that taxpayers have clear information about rules and procedures and that tax compliance is simple and transparent for them.

Saini said that during the first five months of the current financial year, from April to August, Haryana's State Goods and Services Tax (SGST) collection increased by 29 per cent to Rs 24,662 crore.

During the corresponding period last year, the collection stood at Rs 19,174 crore. In August 2026 also, Haryana recorded a 21 per cent increase in SGST collection, compared with the national average growth of 13 per cent.

He said that Haryana accounts for less than 4 per cent of the country's total GST taxpayers, but contributes around 7.7 per cent of the country's total GST collection. The need now is to convert this growth into sustainable revenue capacity.

Saini said that Haryana has rapidly moved from an agriculture-based economy towards an industry- and services-driven economy.

Saini said every new industry, investment and enterprise creates not only employment but also opportunities to expand the revenue base.  He said that Haryana's own tax revenue is currently below 7 per cent of its GSDP compared with the state's economic potential. A target has been set to raise it to 10 per cent by 2030 and 15 per cent by 2047.

He clarified that this target will not be achieved by increasing tax rates. Instead, emphasis will be placed on improving the efficiency, coverage and productivity of the existing revenue system, expanding the tax base, encouraging compliance and preventing revenue leakages.

He said, "The focus is on expanding the base, not increasing the rate; increasing compliance, not the burden."

Saini said that the revenue system of the future should be data-driven and powered by modern technology. By integrating data from GST, registration, transport, electricity, urban development and other government systems, a comprehensive picture of economic activity can be created. This will help identify revenue potential as well as gaps.

He said that artificial intelligence, machine learning, advanced data analytics and integrated databases can be used to identify risks, prevent revenue leakages and improve compliance. However, technology should not be used only for monitoring; it should also enable better services for honest taxpayers.

Saini called upon experts at the conference to prepare a clear action plan covering immediate measures for the next one to two years, medium-term reforms, future technology and data systems, and necessary institutional changes.

He said that taxpayers should remain at the centre of the entire action plan. (PTI)