Seeking to mop up funds for its development and welfare initiatives, Kerala's Congress-led UDF Government hiked taxes and levies touching mostly motor vehicles, liquor, textiles and buildings.
In his budget for 2014-15 presented in the state Assembly, Finance Minister K.M. Mani sought to raise additional resources of Rs 1556.35 crore while giving emphasis on farm sector and increasing various welfare pensions.
Claiming that the levies were being rationalised, the budget proposed to collect around Rs 260 crore from motor vehicles and transport sector alone. This is not only expected to affect the affluent but also the common man may have to pay more to travel in autorickshaws.
The budget sharply increased the purchase tax on imported vehicles, lumpsum tax on motor cars of various capacities and sizes, new generation caravans and inter-state coaches.
2. • Seeking to mop up funds for its development and welfare
initiatives, Kerala's Congress-led UDF Government hiked
taxes and levies touching mostly motor vehicles, liquor,
textiles and buildings.
• In his budget for 2014-15 presented in the state Assembly,
Finance Minister K.M. Mani sought to raise additional
resources of Rs 1556.35 crore while giving emphasis on
farm sector and increasing various welfare pensions.
• Claiming that the levies were being rationalised, the
budget proposed to collect around Rs 260 crore from
motor vehicles and transport sector alone. This is not only
expected to affect the affluent but also the common man
may have to pay more to travel in autorickshaws.
• The budget sharply increased the purchase tax on
imported vehicles, lumpsum tax on motor cars of various
capacities and sizes, new generation caravans and inter-state
coaches.
SAJNA FATHIMA
,SMBS,MGU
3. • It also hiked the duty on Indian Made Foreign Liquor
(IMFL) by 10 per cent, eyeing to net an additional amount
of Rs 400 crore.
• In a proposal that could impact the real estate business,
the Finance Minister rationalised the compounding taxes
on metal crusher units and brought manufactured sand
under the tax net, which together would contribute Rs 140
crore.
• The concession enjoyed by eateries selling multi-national
brands had been withdrawn, making the food sold by them
costly.
• The exchequer targets to get Rs 10 crore from its. The
service apartments given on daily rent basis had been
slapped with a 12.5 per cent tax.
SAJNA FATHIMA
,SMBS,MGU
4. • The budget proposed to double taxes on building and levy
on luxury buildings, seeking to mop up Rs 70 crore.
• However, in a relief to low income groups, houses having
a plinth area of up to 100 sq metre and commercial
buildings of 50 sq metre have been given exemption.
• Price of weekly lotteries would be increased by Rs 10 and
the government expects to get Rs 5,500 crore from the
lottery business.
• Land prices in the state might go up with budget
proposing to increase the fair value of land and necessary
changes in the law will be brought in this regard. It also
proposed to rationalise stamp duty for various document
registration with an objective to mop up Rs 100 crore.
• The budget proposed changes in the compounding tax
structure levied on gold merchants, expecting a loss of Rs
25 crore to the state exchequer.
SAJNA FATHIMA
,SMBS,MGU
5. • Mani announced free laptops for girl students from BPL
families pursuing professional courses. An amount of Rs
10 crore has been earmarked for the scheme which would
implemented through state IT mission.
• Under the Income Guarantee Scheme, 90 per cent of the
premium would be borne by the government.
• Farmers holding up to two hectares would benefit from
the scheme in the event of failing to get adequate returns
from the crops they reared.
• An outlay of Rs 50 crore has been provided for the
scheme. While giving thrust on agriculture development
by setting aside an amount of Rs 900 crore for the sector,
the government announced an amnesty scheme for
farmers having debt arrears up to March 2005.
SAJNA FATHIMA
,SMBS,MGU
6. • To promote coconut related products, the budget
exempted soaps made of coconut oil from tax and also
reduced to five per cent tax on rubber spray oil used by
rubber growers in their plantations.
• To provide solace to the common man, tax on maida and
atta were exempted from tax. The government expects to
incur a loss of Rs 25 crore on this account.
• Similarly, tax on branded and unbranded bakery items like
different cakes, halwa, mixture and laddu have been
unified to five per cent, a long standing demand of Kerala
bakery owners.
• The budget exempted the Kochi Metro project from Works
Contract Tax, which will cause Rs 250-crore loss to the
state government.
SAJNA FATHIMA
,SMBS,MGU
7. • Along with increasing various pensions, Mani also raised
the pension amount of scribes under the Kerala
government journalist pension scheme to Rs 8,000 from
Rs 7,000 and that of non-journalists to Rs 5,000 from Rs
4,000.
• A Comprehensive Health Insurance Scheme (Rs 50 crore),
Income Guarantee Scheme (Rs 50 crore) and Agri Card for
availing various government benefits were some
programmes unveiled for farmers.
• Formation of an Agriculture Mission to promote high-tech
farming with the help of agencies like M S Swaminathan
Foundation, a debt relief scheme for small holders and
setting up of co-operatives for marketing of agriculture
produce at the block level were some other farmer-friendly
schemes proposed in the budget.
SAJNA FATHIMA
,SMBS,MGU
8. • The budget showed a total revenue income of
Rs.64,842.35 crore while revenue expenditure was pegged
at Rs.71,974.04 crore.
• After providing for additional expenditure of Rs 1398.80
crore, concessions of Rs.125.55 crore and additional
resources mobilisation of Rs.1556.35 crore, the budget
showed a year end deficit of Rs.168.92 crore.
SAJNA FATHIMA
,SMBS,MGU