Tax Revenue in Kerala State: Unravelling Trends and Emerging Issues
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Author: Rahul Thekkedath and Akhila Sunil Raj
Author Address: Assistant Adviser, Department of Statistics and Information Management, Reserve Bank of India, Thiruvananthapuram-695033 (Kerala) and Department of Applied Economics, Cochin University of Science and Technology Cochin-682022 (Kerala)
Keywords: Conventional tax, economic shifts, fiscal policy, tax capacity, tax revenue.
JEL Codes: C01, H20, H21, H26, H62.
Abstract
The tax revenue system has undergone considerable changes owing to policy reforms and economic shifts in Kerala. The introduction of the Goods and Services Tax (GST) has altered the composition of state revenue, reducing reliance on conventional taxes while bringing new challenges in compliance and collection efficiency. This study analysed the trends and issues in tax revenue, with an emphasis on pre- and post-GST periods in Kerala. Although tax revenue showed signs of recovery after the pandemic, issues such as a narrow tax base, dependence on central transfers and pending tax evasion cases continued to pose concerns. Strengthening tax administration, improving enforcement and reassessing fiscal policies under the GST framework are essential steps to ensure stable and sustainable revenue growth for the state.
Description
Indian J Econ Dev, 2026, 22(2), 227-238
https://doi.org/10.35716/IJED-25156