From rich to poor: Funds from additional taxes in Kerala

Thiruvananthapuram, June 28 (UNI) Kerala Finance Minister Thomas Issac today said revenue mobilised through additional tax proposed in the revised budget on luxury items would be utilised for the welfare of farmers and those in the crisis-ridden traditional industries.

Winding up the three-day discussion on the budget, he said additional resources would be utilised for distributing welfare pensions and for setting up welfare funds.

The Minister said tax on airconditioners would also be hiked to 20 per cent in addition to the already proposed similar hike on products like refrigerators, vaccum cleaners, washing machines, health drinks, soft drinks and certain other luxury items.

He ruled out any reduction in sales tax hike on gold.

Responding to the demand from the Opposition benches, Chief Minister V S Achuthanandan assured the members that there would not be any cut in the MLA Fund. His announcement was welcomed by the Opposition benches by thumping desks.

Earlier, the Finance Minister said the MLA Fund was reduced to Rs 56 lakh from the present Rs 75 lakh and if it was not sufficient funds could be provided from other sources. However, the Opposition members insisted that the MLA fund should not be curtailed.

UNI CR AA MSJ ND1840