Kerala finance minister K Sankaranarayanan today announced development measures to the tune of Rs 453.23 crore while imposing no new taxes in the Rs 519.88-crore deficit budget presented in the State Assembly.
In the Budget estimates, the total revenue expenditure is projected at Rs 15,364.64 crore while revenue receipts are seen at Rs 12,699.61 crore, which would result in a revenue deficit of Rs 2,665.03.
Stating that Kerala would implement the value added tax (VAT) system from April 1, the minister proposed to exempt many items like life saving drugs, candles, mats, articles of daily use such as pencils, pens, writing ink, pencil sharpeners and Public Service Commission application forms from the purview of VAT.
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However, as part of implementation of VAT, some items will become costlier. Dry ginger, garlic, firewood, broiler chicken, plastic shoes and sandals are will cost 8 to 12 per cent more.
Claming that the envisaged development measures worth Rs 453.23 crore would be met through enhanced revenue collection and prudent fiscal management, he proposed to make entry tax applicable to items such as computer paper, caustic soda and battery (other than dry cell and button cell), medical hospital and surgical equipment, readymade garments and hosiery goods, weighing machines, weighing bridges, automatic teller machines, automotive LPG and liquefied natural gas.
However, he proposed to reduce the tax on aviation turbine fuel to 25 per cent from the current 34 per cent.
To ensure that retail trade was brought in the tax net, the finance minister proposed to reduce the rate of presumptive tax under the VAT system to one per cent.