Kerala Faces Revenue Recovery Challenge Amid Financial Crisis

State struggles to recover arrears of Rs 3,032 crore across multiple sectors

Despite a worsening economic crisis, Kerala faces significant challenges in recovering outstanding dues, which now total Rs 3,032 crore. The state revenue secretary has directed district collectors to intensify recovery efforts, warning of strict action if the process is not accelerated.

In a bid to address the mounting arrears, authorities have begun freezing bank accounts of defaulters in districts such as Kollam, Thrissur, Palakkad, Ernakulam, and Kasaragod. The dues span multiple departments, including GST, Excise, Transport, Law, and Labor. A significant portion—Rs 1,150 crore—is tied to cases where temporary court stay orders were granted, many of which have since expired. However, revenue officials have failed to act promptly, allowing the arrears to pile up. The revenue secretary has instructed officials to thoroughly review these cases and recover the dues promptly.

The GST department shoulders the largest share of the burden, with Rs 1,512.7 crore owed by 9,509 individuals who failed to pay sales tax before the GST rollout in 2017. Another Rs 1,363 crore is pending collection from 9,955 individuals across various sectors, including industry and education. The Excise Department must recover Rs 39.44 crore in liquor tax arrears, while the Transport Department is tasked with collecting Rs 65.06 crore in vehicle tax dues from 23,758 defaulters. Additionally, Rs 51.65 crore remains unpaid in court fines by 6,683 individuals.

These efforts highlight the urgency of addressing systemic lapses and enhancing accountability in revenue collection.

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