In attempting to raise much-needed additional revenue for the government, the 2024-25 State Budget has sought to resume river sand removal, hike duties and fees in various departments including the gallonage fee of Indian-made foreign liquor (IMFL) and the two decade-old court fees.
The budget seeks to raise ₹1,067 crore in additional resources in 2024-25 primarily through the non-tax route.
The government has decided to allow river sand removal from Bharatapuzha, Chaliyar and Kadalundi in 2024-25. “Removal of sand would be taken up in phases in other rivers also with sand deposits. An additional income of ₹200 crore is expected from this,” the budget noted. The sand removal had been discontinued in 2016.
By setting the gallonage fee on IMFL at ₹10 per litre, the government expects to rake in ₹200 crore in additional revenues. Finance Minister K. N. Balagopal said that this hike will not impact liquor prices.
According to Excise officials, The government can slap a levy of up to ₹20 on every gallon of liquor retailed by the Kerala State Beverages Corporation (Bevco).
Currently, the government charges only a minimal gallonage fee. In hiking the levy, Bevco has picked the tab and not the consumer.
The electricity duty collected from consumers who generate and consume energy for their own use has been enhanced from 1.2 paise per unit to 15 paise. This decision will not affect solar ‘prosumers,’ Mr. Balagopal said. The duty has been untouched since 1963 and the hike is expected to rake in an additional ₹24 crore.
Various court fees also have been enhanced, which is expected to bring in ₹50 crore. As per the decision, if the value of a dishonoured cheque is up to ₹10,000 , the court fee will be ₹250. If it exceeds ₹10,000, then 5% of the cheque amount will be the fee, subject to the condition that it does not exceed ₹3 lakh.
In the case of appeals, ₹1,000 will be the court fee in appeals filed by an accused before the Sessions Court. For appeals filed by the complainant before the High Court, it will be half of the court fees remitted in the trial court. The government has also revised the fees for revision petitions before the High court and fees in family courts related to property-related matters.
The government also hopes to raise ₹200 crore through revision of stamp duty slabs and fees in the Registration Department.
The government has announced the Amnesty 2024 tax arrears resolution scheme for arrears from the pre-GST tax regime. The scheme applies to arrears under Kerala Value Added Tax Act, Kerala Agricultural Income Tax Act, Kerala General Sales Tax Act, Kerala Tax on Luxuries Act, and Kerala Surcharge on Taxes
Act. This scheme, designed in four slabs, will fully waive off penalties and interest on arrears.
Leader of Opposition V. D. Satheesan said not even half the proposals for raising additional revenues are practical.
