Kerala Finance Minister hints at new law to expedite revenue arrear collection

The Comptroller and Auditor General (CAG) had pegged the State’s uncollected revenue till March 31, 2021, at ₹21,797.86 crore

Finance Minister K. N. Balagopal said the government weighed amendments to the existing laws relating to the levy of tax on sales and trade to expedite revenue arrear collection.

Speaking to reporters on the sidelines of the Communist Party of India (Marxist) [CPI(M)] State secretariat meeting at the AKG Centre here, Mr. Balagopal said the government also planned more amnesty schemes for tax defaulters.

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The Comptroller and Auditor General (CAG) had pegged uncollected revenue till March 31, 2021, at ₹21,797.86 crore. The outstanding arrears since 2016 alone stood at ₹7,100.32 crore.

The CAG fixed the tax arrears at ₹13,380.43 crore, including State GST. It also pointed out the large amounts of outstanding motor vehicle tax, electricity levy and stamp and registration fees.

It counselled the government to introduce a system that would promptly monitor, report and realise money owed to the State.

Mr. Balagopal said revenue due to the government included uncollected liquor licensing fees dating back to 1952.