Amid protests over new tax proposals: CAG says Kerala govt failed to realise Rs 7,100 cr revenue arrears in 5 years

“The total arrears of revenue as on March 2021 on certain principal heads of revenue amounted to Rs 21,797.86 crore. Of which, Rs 7,100.32 crore was outstanding for more than five years. The total arrears of Rs 21,797.86 crore amounted to 22.33 per cent of the total revenue of the state. Out of the total arrears, Rs 6,422.49 crore has been pending from the state government and local bodies. This necessitates urgent intervention from the government to clear the outstanding arrears,’’ the CAG report said.

The report said the figures related to outstanding arrears are furnished by the departments every year only at the instance of audit. “Absence of prompt reporting of arrears to the revenue department and pursuance of the departments concerned for realising the arrears are the main reasons for the huge pending of the arrears,’’ the report said.

The CAG said these tax dues have been pending for more than five years in 12 departments and include those of excise departments from 1952 onwards. The cases referred to the government for write off (Rs 1,905 crore) were also not being pursued by the departments concerned.

Opposition Leader V D Satheesan said the CAG report substantiates the Opposition criticism that the government had failed in tax collection. “There are serious lapses on the part of the finance department in collecting tax arrears and allowing concessions,” the Congress leader said.

BJP state president K Surendran said the state government should reduce the tax burden on people after realising the arrears from those who had evaded tax.