Tax on big cars, houses to net Rs.260 crore

Cabinet rejects proposal for five-day week in government service

The Cabinet on Wednesday decided to impose additional tax on luxury cars and large houses to net Rs.260 crore.

The tax on cars costing more than Rs.20 lakh would be increased to 20 per cent. Currently, all cars attract a tax of 15 per cent. Tax rates on houses with a plinth area of more than 3,000 square feet and flats with an area of more than 2,000 square feet would also be hiked with revised slab rates.

The Cabinet rejected a proposal of the General Administration Department for introduction of five-day week in government service.

Vehicle tax

Chief Minister Oommen Chandy told mediapersons after a Cabinet meeting that a one-time settlement scheme would be implemented for the collection of vehicle tax arrears of transport and non-transport vehicles. Arrears which are five years or older on transport and non-transport vehicles would be settled on payment of 20 per cent and 30 per cent of the dues respectively. An opportunity would be given to regularise illegal constructions before the end of this year.

No display ads

As part of the austerity measures, the government would not release display advertisements to the print and visual media till March 31, 2015.

Ordinances

The Cabinet also approved Ordinances to give effect to the taxation proposals approved by the Cabinet at its last meeting. This includes Ordinances to increase basic revenue tax, plantation tax and stamp duty and registration fee. An ordinance amending the General Sales Tax Act and the Kerala Value Added Tax Act would be issued as Kerala Taxation Laws (Amendment) Ordinance to give effect to the proposals to increase tax on cigarettes and liquor including wine and beer. Mr. Chandy said the government also proposed to bring an Ordinance for coordinating use of Malayalam as official language. This was on the basis of the recommendations of the Official Languages Committee.

Project implementation

With a view to implementing projects with private-public participation at the local level in a time-bound manner, Partner Kerala Mission would be established under the Department of Local Self-Government. Titles would be issued to 18 families who were in possession of excess land taken over by the government in Ponnani municipality in Malappuram district after setting apart 83 cents for public purposes.