Local bodies in Kerala struggle with Rs 1,641 crore property tax arrears

Alappuzha: Local authorities across the state are facing a massive reduction in property tax collection, with Rs 1,641.61 crore in arrears reported across corporations, municipalities, and grama panchayats. The arrears are primarily concentrated in six corporations, totaling Rs 1,107.98 crore.

The breakdown of the arrears includes Rs 423.63 crore in various municipal corporations and Rs 110 crore in grama panchayats. The figures were known when the local department reviewed tax collection data up to March 31, 2024.

The failure to collect these taxes has been attributed to a combination of factors, including interference from local representatives and negligence by officials. In the six major corporations - Thiruvananthapuram, Kollam, Kochi, Thrissur, Kozhikode, and Kannur - there are 1,20,557 taxpayers with outstanding dues. However, action has only been taken against 1,480 individuals.

Municipal corporations report that 2,17,484 residents are behind on their property tax payments, with only 2,223 facing enforcement actions. In the grama panchayats, the situation is even more dire, with 19,91,805 people having arrears. Yet, action was taken only against 79,820 persons.

Outstanding dues: Property tax arrears by corporation/municipality (in crores)

Thrissur	408
Kochi	298
Thiruvananthapuram	291
Thrikkakara	88
Kottayam	47
Guruvayur	45