Kochi: The sales tax collection in Kerala has registered a steep decline with the latest figures pointing to a gap of Rs 704 crore till 31 October during the current financial year compared to the corresponding period last year, according to the Kerala Commercial Taxes Staff Association.

The latest issue of Sales Tax Voice, a publication of the association, said the total tax collection till 31 October was Rs 2,903 crore against the target of Rs 3,607 crore. The growth rate in tax collection during October was only 9 per cent, whereas the growth during the corresponding month last year was 21 per cent.

It was also pointed out that the dip in the sales tax collection was despite the steep hike in prices of major commodities like petroleum products, gold, building construction materials and other essential commodities.

This pointed towards lapses in tax collection, the report said. The resentment prevailing among sales tax officials was cited as one of the reasons for the lapses. The report also pointed out that the tax collection in Thiruvananthapuram, Mattancherry, Idukki and Kasargod was low compared to the state average.

The collection from Alappuzha and Thrissur districts was also comparatively low. However, the tax collected through the sale of liquor increased during the period.