Budget

Thiruvananthapuram: The financial position of the State is very satisfactory and the financial management by former Finance Minister K. M. Mani is highly appreciable," said Chief Minister Oommen Chandy in a post-budget interaction with the media here on Friday.

The Budget for 2016-17 is a continuation of the budgets presented by Mr. Mani and there is nothing special about it, he added.

Kerala Budget for the coming year is admission of failure of the government to address the economic crisis looming over the State, CPI (M) leader Thomas Isaac said here on Friday.

Commenting on the Budget, the CPI (M) leader said that till yesterday, Budgets only talked of financial crisis. But, now an economic crisis was at the doors and the government lacked ability to intervene. This was because of failure at resource mobilisation.

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.