Government holds back liquor ordinance

THIRUVANANTHAPURAM: Governor P Sathasivam gave assent to ordinances seeking hike in land tax and plantation tax. The two ordinances Basic Revenue Tax pertaining to land tax and ordinance on plantation tax hike seeking amendment to the 1960 Kerala Plantation Act were approved by last Cabinet.

Though two other ordinances ; General Sales Act and Value-Added Tax Act and (Kerala Taxation Law Amendment Ordinance) on liquor and cigarette tax and Amendments to the 1959 Kerala Stamp Paper Act hiking stamp duty were also approved by Cabinet, these were not sent for Governor’s assent. Sources said the General Sales Act and Value-Added Tax Act and (Kerala Taxation Law Amendment Ordinance) on hiking IMFL, beer/wine and cigarette prices was withheld by the Government since the bar owners case is before the High Court.

The ordinance on Amendments to the 1959 Kerala Stamp Paper Act, was also not sent for Governor’s assent as there were reservations in Cabinet regarding removal of upper limit in registration rates and stamp duty. The matter is likely to be discussed at weekly Cabinet on Wednesday. The government on September 17 had announced a series of measures to mobilise additional resources for overcoming the current fiscal crisis by raising tax on IMFL, beer and wine by 20 per cent and cigarettes by 8 percent besides hiking land tax and plantation tax.

The government aimed at mobilising Rs 1,130 crore (minus 5 per cent cess) through increase in tax on IMFL and Rs 100 crore on sale of beer and wine. Tax on cigarettes had been raised from 22 per cent to 30 per cent, with the target of collecting  Rs 264 crore.

FAIR VALUE : Meanwhile, Cabinet is likely discuss the report pertaining to increasing the fair value of land on Wednesday.  The committee headed by Food and Civil Supplies Minister Anoop Jacob who also holds the registration portfolio, had gone into the proposal for increasing the fair value.