KM Mani puffs up cigarettes’ tax

Thiruvananthapuram: A generous finance minister on Wednesday raised welfare pensions across the board and withdrew some of the unpopular tax measures proposed in his 12th budget in the Assembly.

The increase in the lumpsum tax for autorickshaws has been withdrawn, so also the levy for the registration of gahan deed while taking loans from cooperative banks. 

K.M. Mani, who taxed liquor but left cigarettes untouched in his budget speech, hiked the sales tax on cigarettes from 20 to 22 percent.

The higher rates on food served in restaurants has been limited to five-star restaurants and for food served in passenger aircraft and ships.

All welfare pensions, which Mani had raised by Rs 100 in the budget, were enhanced by another Rs 100.

The salary of palliative care nurses in public health centres has been raised from Rs 6,000 to Rs 8,000.

Mani made 56 new announcements and five tax-related amendments while replying to the general discussion on budget 2014-15 in the Assembly.

This includes Rs 10 crore for the procurement of rubber, a demand made  by members during the three-day discussion.

The Finance Minister was in such an accommodative mood that he liberally approved the demands made by members, most of them related to local needs, on the floor of the Assembly.

There were innumerable impromptu concessions, which were  traditionally  announced on the day of the reply, but which will be presented in the Assembly only on January 30.

Mani had raised lumpsum tax for autorickshaws from Rs 2,000 to Rs 2,500 in his budget. The withdrawal of the measure will cost him Rs 25 crore.

The rollback of the ‘gahan’ levy will leave the exchequer poorer by Rs 14 crore. However, the higher impost on cigarettes will fetch Rs 50 crore.

The  minister has also decided to withdraw the move to initiate prosecution measures against traders who refuse to furnish bills.