Kerala Budget: Fuel, liquor, property tax and vehicles to become costlier

The CPM-led Left Democratic Front in Kerala has proposed a social security cess of Rs 2 per litre on petrol and diesel.

The state Budget for 2023-24 presented by Finance Minister K N Balagopal on Friday also proposed social security cess of Rs 20 to Rs 40 per bottle of Indian Made Foreign Liquor (IMFL) as well as to increase taxes on buildings and vehicles.

The proposals triggered strong resentment with the Opposition Congress-led United Democratic Front shouting slogans in the house accusing the government of imposing an additional financial burden on the common man. The price hike of petrol and diesel will lead to an overall price hike of commodities, the Opposition flayed.

The Budget proposed a revision in property tax and a new tax structure for multiple houses owned by individuals as well as newly-constructed houses that are remaining unused. Various fees associated with building construction would also be increased.

One-time tax on new motorcycles costing up to Rs 2 lakh and new private cars in the Rs 5 lakh to 15 lakh price range will be increased by two per cent. One per cent increase was proposed for motor cars in other price ranges.

A social security cess at the rate of Rs 20 per bottle of Indian Made Foreign Liquor in the price range of Rs 500 to Rs 999 and Rs 40 per bottle for IMFL priced above Rs 1000 were also prescribed in the budget. Various court fees would also be increased by one per cent.

Opposition MLAs pointed out that the proposals to revise building taxes, enhance tax on motorcycles priced up to Rs 2 lakh and motor cars in the Rs 5 to 15 lakh price hike, increase court fees and increase liquor prices would directly impact the low and middle-income groups. Instead of initiating austerity measures, the government is trying to impose the burden of the financial crunches caused by extravagance and mismanagement.