News and Views

The Budget for 2016-17, presented to the Assembly by Chief Minister Oommen Chandy on Friday, proposes a slew of welfare and developmental programmes and tax concessions.

The pre-election Budget earmarks substantial sums for welfare of vulnerable sections and infrastructure development. The only tax proposal is that on plastic bottles and bags.

Exemption to all companies from paying Agriculture Income Tax next year. Tax exemption granted to Liquefied Natural Gas including re-gasified LNG for a year.

Earthen pots made from earth clay including flowerpots, receptacles, statues and earthen oven, assistive devices for visually challenged persons and cooked food made by prisoners in jail exempted from tax.

Tax on Automated Robotic Car Parking System is proposed to be reduced from 14.5% to 5%

Exemption from VAT for cardamom sold in the auction centers.

Kerala Chief Minister Oommen Chandy proposed a five per cent surcharge on plastic bottles in the Budget for 2016-17 presented to the Assembly today.

The surcharge is proposed as part of efforts at climate protection and reducing carbon footprint in the State. A 20 per cent tax is proposed on non-woven polypropylene plastic bags, which are spreading on the guise of cloth bags, and other types of plastic bags.

Kerala Chief Minister Oommen Chandy will find the going tough as he presents the State Budget for 2016-17 to the Assembly on Friday.

It is not just the anticipated protests by the Opposition demanding his resignation: Kerala’s economy is on a tailspin. Revenue receipts have fallen below expectations for three years in a row. But Mr. Chandy will be tempted to present a populist Budget this being the election year.

The Opposition on Thursday boycotted the debate on the motion of thanks to the Governor for his address saying that they cannot cooperate with the proceedings.

The Opposition had earlier urged the governor not to deliver the address as the government was immersed in corruption. It had not right to make policy declaratgions.