The budget proposals to impose a cess of Re.1 per litre of petrol and diesel and enhance stamp duty and registration fee will take effect from Wednesday. The budget has imposed the additional cess on fuel to mobilise Rs.375 crore for the construction of houses for the weaker sections of society.
Stamp duty and registration fee will see an increase ranging from 200 to 1,000 per cent from April 1, under Finance Minister K.M. Mani’s proposal to generate additional revenue of Rs.100 crore. Disposable plastic and Styrofoam cups and plates, thermocol sheets and printed flex will cost more due to enhanced tax of 20 per cent while plastic toys will attract 14 per cent tax.
Registration and renewal fee for hotels, halls, auditoria, wedding halls, hospitals, home stays and serviced apartments, villas and houseboats will also go up while serviced villas will attract higher tax. A higher one-time tax on new motorcycles and the tax on vehicles registered in other States will also take effect from Wednesday.
The government, however, had rolled back the proposed tax on foodgrains, sugar and coconut oil, following public concern over the inflationary impact. The budget had proposed a tax of one per cent on rice, rice products and wheat and five per cent on maida, atta, sooji and rava as well as a tax of two per cent on sugar and one per cent on coconut oil.
During the short budget discussion in the Assembly, the government announced the withdrawal of the tax on food items to avoid causing a burden to the common man.
