By IANS,
Thiruvananthapuram : Land and vehicle taxes will go up in Kerala from next month. And so would the prices of cigarettes and liquor, according to the Rs.289.25 crore deficit budget presented in the state assembly here Monday.
“The present land tax was fixed 17 years back and it is a minuscule rate of Re.One per cent of land and from now on, I have decided to double it,” Finance Minister K.M. Mani said, presenting the budget for 2012-13.
“Likewise, the motor vehicle tax will now be based on the value of the vehicle and through this mode I will be able to get a fresh revenue of Rs.115 crore.”
This was Mani’s second straight budget — 10th in his long political career, which incidentally is a record in the country by any finance minister.
Mani proposed to hike the tax on cigarettes from 12.5 to 15 percent and on pan masala products from 20 to 22.5 percent. This would fetch the exchequer an additional Rs.76 crore.
On liquor, he raised the present six percent cess to 10 percent, bringing in an additional revenue of Rs.90 crore.
Mani also revised the VAT (value added tax) structure. From April, the four percent VAT tax slab will become five percent and the 12.5 percent slab will be 13.5 percent. This would raise tax collection to the tune of Rs.1,502 crore.
Mani also announced that the government would come out with a comprehensive policy on coconut promotion.
“Tender coconut will be declared as the official drink of the state. We will give a subsidy up to a maximum of Rs.25 lakh to all those who come out with ventures which will produce value added products using coconut,” he said.
Leader of opposition V.S. Achuthanandan said at a news conference that some aspects of the budget had already been published in newspapers. “We demand the resignation of Mani because the budget has been leaked,” he said.