Thiruvananthapuram: Cabinet on Wednesday announced a series of measures to mobilise additional resources worth nearly Rs 2000 crores for overcoming the present fiscal crisis by raising tax on IMFL, beer and wine by 20 per cent and cigarettes by 8 percent besides hiking land tax, removing upper limit in registration rates and stamp duties.
The tax on IMFL sold through government run Beverages Corporation has been increased from 115 per cent to 135 per cent. Besides, 5 per cent cess will be levied on tax for the rehabilitation of the workers .
The rates of wine and beer have been increased by 20 per cent. The government expects to mobilise Rs 1130 crore (minus 5 per cent cess) through increase in tax on IMFL and Rs 100 crore on sale of beer and wine.
Tax on cigarettes has been raised from 22 per cent to 30 per cent. Of the eight per cent, three will go to Free Cancer Care programme announced on Independence Day and five percent will come to state coffers. Government expects to mobilise Rs 264 crore.
The new tax regime will come into effect soon after the promulgation of ordinance, chief minister Oommen Chandy said at the Cabinet briefing.
While there is no hike in stamp duty and registration fee, the upper upper limit in each category has been taken off. As of now, stamp duties (partition – 1 per cent, gift – 2 per cent, release – 2 per cent and settlement – 2 per cent) are subject to a maximum of 1000 rupees. The upper limit of Rs 1000 has been removed.
Similarly, the upper limit of Rs 25,000 for land registration (the rate of which is one percent) has also been taken away. There will be no ceiling and whatever is one per cent would be charged.
Plantation tax
Tax on coconut, arecanut, rubber , coffee , tea, cardamom, pepper plantations has been increased. No tax on plantation below 2 hectares. In 2 to 4 slab - Rs 100 each for two and three hectares (no change). Thereafter, it has been doubled. 4-8 slab for plantations three to eight hectares Rs 300 each, 8-15 slab for three to 15 hectares Rs 400 each, 15-25 slab from three to 25 hectares Rs 500 each and above 25 hectares and above Rs 700 each . Government expects to raise Rs 3 crore annually.
Land Tax doubled
Land tax in panchayat area upto Rs 20 cents - Rs 1/ cent, more than 20 cents - Rs 2 / cent.
Municipality and township upto Rs 6 cents – Rs 2/cent, more than 6 cents/ Rs 4.
Corporation area upto 4 cents – Rs 4/cent and above 4 cents Rs 8/cent.
Government expects to mobilise Rs 78 crores.
Fee for various services hiked
Fee charged by government for offering various services barring those in the education, sector has also been increased.
For fees ranging from s 10 to Rs 1000 the increase will be by 50 per cent, Rs 1000 to Rs 10,000 – 25 per cent and above Rs 10,000 – 15 per cent.
Water Tarrif Hike
Water tariff will be increased by 50 to 60 per cent for families using more than 10,000 litres per month. The existing tariff is Rs 4/kilo litre.
The government will not get any additional resources through the hike. Of the Rs 20 spent by KWA for purification and supply of 1 kilo litre of water, it gets only Rs 8 in return bearing a loss of Rs 12.
Water tariff hike will not affect BPL families who will continue to get it free upto 10,000 litres. There will be no hike in tariff of Rs 20 charged from non BPL families using up to 10,000 litres per month.
