CHENNAI: The CAG report on State finances for 2023-24 raised suspicion of suspected temporary misappropriation of funds as Tangedco collected Rs 1,985 crore as electricity tax from consumers but remitted only Rs 1,457 crore to the government account during the study year.
“The amount of tax collected but not remitted into the consolidated fund as of March 31, 2024 was Rs 507.43 crore (after retaining collection charges of Rs. 19.85 crore). Such non-remittance to the government account and retaining the collected tax for such a long period is fraught with the risk of suspected temporary misappropriation,” the report said.
The report explained that under Section 3 of Tamil Nadu Tax on Consumption or Sale of Electricity Act, 2003, Tangedco is mandated to collect the tax along with energy charges and remit the tax into Government account. It observed that Tangedco had not followed the mandatory requirement of remitting the tax amount to the Consolidated Fund.
On the other hand, the short remittance of Rs 4,264.61 crore towards tax collection of Rs 5,493.40 crore from 2019-2023 was remitted to the Consolidated Fund of the State after adjusting the collection charges (Rs 142.16 crore).