Kerala FM presents Rs 3367 cr deficit budget
Thiruvananthapuram, Mar 06: Kerala Finance Minister Thomas Issac today presented a Rs 3367 crore-deficit Budget for 2008-09 in the state Assembly, proposing one per cent cess on sales tax to mobilise Rs 100 crore for implementing welfare schemes.
The Marxist-led Left Democratic Front(LDF) Government, in an apparent step to protect the interest of small traders, also proposed a ten per cent surchage on taxes for retail majors having an annual turn over of more than Rs five crore. Meanwhile, the government recognised a long-pending demand of the aviation industry to reduce the tax on aviation turbine fuel to four per cent.
While paper bags would be totally exempted from the tax net, the tax on plastic carrybags would go up to 12.5 per cent.
The prices of generators, hospital equipment, computer peripherals, used cars, machine tools, cycle parts, printing press, handloom and certain other item would come down.
As
per
the
budget
estimates,
the
total
recenue
receipts
was
Rs
24936
crore
and
the
revenue
expenditure-
Rs
28303
crore,
leaving
a
revenue
deficit
of
Rs
3367
crore.
The
year-end
deficit
was
projected
to
be
Rs
627
crore.
Dr
Issac
said
mobile
phone
recharge
coupens
would
be
exempted
from
VAT
with
effect
from
April
one,
2005.
Similarly,
the
amount
collected
through
copy
right
and
right
to
use
in
film
industry
would
be
exempted
from
the
tax.
The
Minister
said
a
ten
per
cent
luxury
charge
would
be
introduced
for
hospital
rooms
with
a
daily
rent
of
Rs
1,000
or
more,
expecting
an
additional
revenue
of
Rs
one
crore.
The tax on paper lottery draw would be Rs seven lakh and that of the bumber lotteries would be Rs 17 crore. A sum of Rs 25 crore was expected through this steps.
The Minister said an amnesty scheme would be introduced to collect arrers of tax amounting to Rs 4,280 crore. This would enable the government for speedy recovery of sales tax arrers.
He said the commercial taxes department would be computerised to streamline the process.
Dr Issac also termed as baseless the argument that Kerala was in a debt-trap, saying that the debt burden of the state that was 317 per cent of the revenue receipt during 2003-04 had come down to 274 per cent now. The tax collection also registered a good growth druing the period.
UNI