The Amnesty 2024 tax arrears resolution scheme announced by the State government is meant to free the trade sector of decades-old dues under pre-GST tax regimes, Finance Minister K. N. Balagopal said on Friday. Doing away with these โtax residuesโ is expected to give a fillip to the trade sector, according to Mr. Balagopal.
The arrears date back to the period from 1960-61 to 2017-18. In many instances, the original tax arrears have mounted to huge sums on account of piled-up interest and fine. Furthermore, the Taxes department is forced to devote a sizeable portion of its resources to litigation related to these dues, the Minister noted.
A distinguishing factor of Amnesty 2024 is the full waiver on interest and fine in all four slabs under the scheme. Another highlight is the decision to write-off tax arrears up to โน50,000 entirely. The write-off will be based on the tax amount, exclusive of the fine and interest. This section – Slab 1 – alone covers a liability of โน116 crore and more than 22,000 traders. Interestingly, it also accounts for 44% of the tax arrears.
Deadline
For arrears ranging from โน50,000 to โน10 lakh – constituting the second slab – defaulters need pay only 30% of the arrears. For arrears between โน10 lakh and โน1 crore, there are two schemes; 40% of the amount for cases under appeal and 50% for others. For tax arrears above โน1 crore, 70% for cases under appeal and 80% for the rest. December 31, 2024, is the deadline for joining the amnesty scheme.
Dues under the pre-GST Kerala Value Added Tax Act, Kerala Agricultural Income Tax Act, Kerala General Sales Tax Act, Kerala Tax on Luxuries Act, and Kerala Surcharge on Taxes Act are being considered for the scheme. Tax, turnover tax, and compounding tax related to liquor sales under the General Sales Tax will not come under its ambit.
Mr. Balagopal had announced the amnesty scheme in the 2024-25 State Budget.
