Kerala Budget Highlights

Tax proposals

Indian Made Foreign Liquor

  • Rationalisation of excise duties on Indian Made Foreign Liquor merging sales tax, cess and other levies—tax on IMFL having price up to Rs.400 will be fixed at 200 percent and for prices above rupees four hundred will be fixed at 210 per cent.
  • The tax rate of beer will be fixed at 100 percent.

State Beverages Corporation to commence trading in Foreign Made Foreign Liquor

  • Tax rate of FMFL is fixed at 78 percent and that of Foreign Made Wine at 25 per cent.  
  • Further, a special fee of Rs.87.70 per proof litre will be levied according to the Abkari Act on FMFL.
  • A special fee of Rs.1.25 per bulk litre will be levied on Foreign Made Wine.

Amnesty for luxury vehicles registered in Puducherry

  • Amnesty scheme will be introduced for collection of tax on luxury cars and vehicles registered in Puducherry under bogus addresses by owners in Kerala, with exemption from legal proceedings.
  • If a vehicle registered in another State is being used in Kerala for more than one month to one year, tax at a rate equal to 1/15th of the onetime tax levied from similar vehicles registered in Kerala, will be levied for one year.

Services: Fee hike

  • All fees and charges on services will be increased by 5 percent

Electric Autorishaws: tax reduced

  • Annual tax of Rs.500/- on Electric Autorickshaws and LPG / CNG Auto-rickshaws is reduced to Rs.450/-. Such vehicles which are newly registered will have to pay tax of Rs.2000 for five years.
  • A 35 per cent hike is proposed in the quarterly tax rate of Tipper Lorries having RLW (Registered Laden Weight) more than 20 tonnes.

 Registration and Stamp Duty goes up

  • Comprehensive scheme to dispose off all under valuation cases regarding stamp duty is proposed.
  • Gift, partition, settlement and release deeds to attract minimum stamp duty of Rs.1000 or 0.25% of sale value, whichever is higher against Rs. 1000 for all cases.
  • Court fee at the rate of 2% will be levied on the arbitration amount in arbitration proceedings under Chitty Act.
  • The fee for obtaining certified copy of documents from Sub Registrar Offices will be increased to Rs.5 per page in case of documents of more than 10 pages. For documents of 10 pages or below, the existing rate will continue.
  • Stamp duty of agreements executed for public works or service level agreements will be levied at 0.1 percent of the total contract value subject to a maximum of Rs.1 lakh.
  • Contracts for advertising and for conferring rights of telecast or broadcasting with an intention to make profit will be levied stamp duty at the rate of Rs.500.
  • Existing fair value of land will be increased by 10 per cent, leading to higher stamp duty and charges for registrations.
  • Stamp duty on Power of Attorney for transfer of immovable property between family members will be increased from Rs.300 to Rs.600.
  •  Documents relating to surrender of leases before the lease period will be levied a stamp duty of Rs.1000.

 Land Tax hiked

  • The enhanced rates as per Kerala Land Revenue Ordinance, 2014 will be restored. Accordingly, the levy will be as follows:
  In Panchayat  areas:
    Up to 8 Are -- Rs. 1 per Are
   Up to 2 Hectare -- Rs.  2 per Are
    Above 2 Hectares -- Rs. 400 plus Rs 5 per Are for land in excess of two hectares.

In Town Panchayats and Municipal Council areas:
   Up to 3 Are -– Rs. 2 per Are
    Up to 2 Hectare -- Rs. 4 Per Are
    Above 2 Hectares -- Rs. 800 plus Rs. 10 per Are for land in excess of two hectares.
  In Municipal Corporation areas:   
Up to 2 Are -- Rs. 4 per Are  
Up to 2 Hectares -- Rs. 8 per Are
  Above 2 Hectare -- Rs. 600 plus Rs. 20 per Are for land in excess of two Hectares.