Kohima: Nagaland’s tax revenue increased by Rs 170.47 crore in the 2025-26 financial year, reaching Rs 1,597.51 crore and registering an 11.9 per cent year-on-year growth, officials said on August 10.
The figures were presented during a review meeting between Governor Nand Kishore Yadav and the Department of State Taxes at Lok Bhawan in Kohima. The meeting focused on the state’s revenue performance, GST collections, tax compliance, enforcement measures, challenges and the department’s future action plan.
According to an official release, Nagaland collected Rs 1,427.03 crore in tax revenue during 2024-25, compared with Rs 1,358.98 crore in the previous financial year.
Goods and Services Tax (GST) remained the biggest contributor to the state’s tax revenue. In 2025-26, GST accounted for Rs 1,181.88 crore, around 74 per cent of the total tax collection. GST collection in the current financial year has already reached Rs 450.35 crore up to July 2026.
The department, however, highlighted several challenges affecting tax administration, including manpower shortages, the need for regular upgrades to IT infrastructure and an increasing workload due to the growing number of taxpayer registrations and return filings.
Officials also pointed to the rising volume of GST data requiring scrutiny and risk assessment, along with difficulties in identifying unregistered taxpayers, detecting tax evasion and conducting field verification of high-risk taxpayers.
Under its ‘Vision 2063 and Beyond’, the Department of State Taxes has set a target of collecting more than Rs 2,400 crore by 2030. The targets have been set at Rs 5,000 crore by 2038, Rs 11,000 crore by 2047 and Rs 50,000 crore by 2063.
Governor Nand Kishore Yadav said the review meeting also discussed measures to strengthen tax compliance and enforcement.
“I emphasised to the officials the need to place special focus on efficient and transparent tax administration, improved tax compliance, and further strengthening revenue collection,” Yadav said in a post on X.
He added that a robust revenue system was essential for Nagaland’s overall development and the effective implementation of public welfare schemes.