Tamil Nadu's economy is projected to grow at 10.83% for 2025-26, yet its State’s Own Tax Revenue (SOTR) shows only a 6.8% increase, totaling approximately ₹1.92 lakh crore. The State Goods and Services Tax (SGST) collections rose marginally by 1.6%, reflecting ongoing challenges in tax compliance and revenue generation. The previous year's SGST was significantly revised down due to GST rate rationalization, which has adversely affected revenue collection. A concerning 30% of registered dealers have not contributed to tax payments, highlighting compliance issues that could hinder future revenue growth. Experts suggest that despite the economic growth, tax buoyancy is lacking, primarily due to the nature of growth driven by exports rather than domestic consumption. Addressing the compliance issues and the loopholes in tax collection should be a priority for the government to enhance revenue streams moving forward.