Kerala Budget 2015-16 Highlights

Taxation Proposals

Levy of 1% tax on rice, rice products and wheat and 5% tax on maida, atta, suji and rava (Rs. 110 crore). Goods sold to PDS will continue to be tax free.
Additional tax of Re. 1 a litre on petrol and diesel (Rs. 375 crore)
Two per cent tax on sugar in view of reduction in Central tax (Rs. 100 crore).
One per cent tax on coconut oil (Rs. 50 crore)
Tax of 5% on transfer of copy right of cinema filmswhich was exempted in 2010 will be reintroduced (Rs.20 crore).
Tax on beedi raised to 14.5%.
The benefit of the tax exemption granted to nylon ropes,polyester ropes and polyester twine would be limited to the sales made by Mathsyafed, Theeramythri and Fishermen Cooperative Society. Others would be taxable at 5%.
Brooms, brushes and mops made of plastic used for cleaning of floors and toilets to attract 5% tax.
One per cent tax on poultry feed.
Registration and renewal fee under KVAT Act and Luxury Tax Act hiked.
Registration and renewal fee for hospitals, home stays and serviced apartments/villas increased from present Rs. 1000/- to Rs. 1500/-.
For house boats, the registration fee will be increased from to Rs. 1000/- to Rs.1500/- and renewal fee will be increased from Rs. 500/- to Rs. 750/-.
Rate of tax of disposable plastic cups and plates, disposable Styrofoam cups and plates, thermocol/ Styrofoam sheets and printed flex enhanced to 20%. All types of plastic toys to attract tax at 14.5%.
Serviced villas will be treated at par with serviced apartments and made taxable at 12.5% under Kerala Tax on Luxuries Act.
Plantation tax withdrawn for plantations of individuals
One time tax rate of motor cycles having purchase value up to 1 lakh rupees willbe raised from 6% to 8%, that of motor cycles having purchase value above 1 lakh rupees and upto 2 lakh rupees from 8% to 10% and one time tax rate of motor cycles having purchase value more than 2 lakh rupees to 20%.
Tax on those vehicles registered in other States and operating within the State of Kerala for more than a month
Tax on luxury vehicles imported for short term use at the rate of Rs.10,000/- for first month and Rs.5,000/- for every subsequent month of stay or part thereof.
Stamp duty and registration fee increased for registration of MOU and other instruments.

Tax concessions

Rubber wood exempted from tax.
LNG exempted from tax for one year
Used plastic and electronic waste, and recycling plant for plastics shall be exempted from tax.
Pyrolysis oil obtained from recycling of plastics at the point of sale by such manufacturing units shall be exempted from tax.The tax exemption granted to khadi products sold by manufacturing units approved by Kerala Khadi and Village Industries would be extended to units approved by Khadi and Village Industries Commission.
Fabricated wall panels made by FACT from their by-product Glass fibre reinforced gypsum is exempted from tax.
The tax exemption granted in 2012 to honey, honey bee box and accessories would be given retrospective effect with effect from 01-04-2005 onwards.
The rent limit under luxury tax with respect to rooms in charitable hospitals enjoying exemption under VAT, will be raised to Rs.2000.

Other announcements

Online shopping sites will be required to file returns

Fee for regularisation of paddy fields converted in the past

Growth rate of Kerala GDP exceeded that of the nation during past three years.

Rs. 300 crore each for rubber procurement and paddy procurement

20000 metric tonnes of Rubber be procured for Rs. 150 a kg.

Rr. 20 crore for subsidy for spices cultivation

Master plan for infrastructure development. Rs. 200 crore allocation

Rs. 600 cr for Vizhinjam port project; Rs. 960 for Kochi Metro

Programme for total health cover--
smart health cards to be introduced for treatment in private hospitals; Arogya Kerala trust to be formed

Digital Kerala online services.

All services under Right to Services Act to be offered online.

Rs. 162 for building flats for poor; 75000 houses for BPL families.

Direct payment of welfare pensions to post office savings accounts

Unification of of income level for various benefits Rs. 1 lakh or less.

Assistance for marriage of daughters of widows hiked to Rs. 50000 from Rs. 30000

New polytechnics in agriculture and animal husbandry.

One panchayat in each district to be made senior citizen friendly.

Mega food park at Palakkad Spices Park at Thoudupzha

Rs. 15 crore Shengulam Augmentation project.

Memorial for Speaker G. Karthikeyan

One lakh social security volunteers to be trained

Government to bear interest on farm loans if repaid in time.

Infrastructure Master Plan

Rs. 1000 crore for start ups

Dialysis centres in district hospitals.

Kerala Institute of Local Administration to be converted into a University