The government has decided to withdraw the tax on food items proposed by Finance Minister K.M. Mani in the budget presented on March 13.
Mr. Mani told the Assembly on Monday that the tax proposals on foodgrains, sugar, and coconut oil were being rolled back. The decision comes in the wake of criticism against the proposal and its potential to send prices of essentials soaring.
In his budget speech, Mr. Mani had proposed a tax of 1 per cent on rice, rice products, and wheat and five per cent on maida, atta, suji, and rava to net an additional revenue of Rs.110 crore.
Exemption for PDF
He had also proposed a tax of 2 per cent on sugar and 1 per cent tax on coconut oil. The food items sold through PDS outlets were, however, exempted. Mr. Mani said the total concession on the tax waiver would cost the exchequer Rs.260 crore.
Welcoming the announcement, Chief Minister Oommen Chandy said the decision was taken to avoid burdening the common man.
With the Opposition raising a stiff protest against the decision to suspend five MLAs for unruly behaviour in the House on March 13, the budget discussion has been curtailed to Monday and the Assembly adjourned for the rest of the week.
The discussion on the Vote on Account, the Appropriation Bill in respect of the supplementary demand for grants for 2014- 15, the Appropriation Bill (Vote on Account) Bill 2015 and the introduction of the Finance Bill are to be taken up when the House reconvenes on March 23.
