Kerala Financial Crisis: Fuel tax arrears amount to Rs 788 Cr

Kochi: The State Government is hoping to receive a fuel tax arrear of Rs 788 crore from oil companies to tackle the ongoing financial crisis. 

When petrol pump owners purchase fuel from oil companies, they pay tax along with the fuel price. Subsequently, the oil companies are bound to transfer the amount to the State Government. 

Even as there are arrears, the State Treasury is significantly benefitting from fuel tax revenues. For instance, the government's revenue from fuel taxes was Rs 8,540.67 crore in the fiscal year 2021–22, Rs 10,616.68 crore in FY 2022–23, and Rs 11,188.09 crore in FY 2023–24. Over eight years, a total of Rs 66,374 crore was received in this manner. 

During the initial term of Chief Minister Pinarayi Vijayan, the government received a total of Rs 36,028.95 crore in this manner.