Mani hints at new taxes

THIRUVANANTHAPURAM: The state government is seriously mulling the idea of mobilizing additional revenue by various steps, including a number of new taxes, to make up for the under-recovery of revenue this fiscal.
Finance minister K M Mani informed the assembly through a written reply that commercial tax, registration, revenue and forest departments have been asked to mobilize revenue by imposing new tax.
Suggestions by the finance department include levying 5% VAT for clothes, 2% essential necessity cess for luxury cars costing above Rs 20 lakh and 5% tax on used car sales. The registration department has been asked to revise the fair price of land from 10% to 20% that will in turn bring revenue through revised stamp duty. There is also a recommendation to levy 2% stamp duty for settlement and gift. Revising the building tax rate based on plinth area and levying plantation tax and lease arrears are the steps which will be initiated by the revenue department.
"These are all suggestions by the panel which looked into the better mobilization of revenue. The suggestions were conveyed to respective departments for action," taxes secretary A Ajith Kumar told TOI.
Mani admitted in the assembly that the state would face financial constraints if additional revenue was not mobilized. He also listed out measures of cost cutting which have been implemented in various departments. "New vacancies are created only under unavoidable circumstances. Steps have been taken to review whether the existing temporary posts need to be retained. Strict instructions to contain non-plan expenditure within the budget allocation and not to purchase new vehicles have been given to departments," said Mani.
The registration department will start e-stamping immediately and departments concerned should work together to mobilize revenue arrears. No new posts should be created without the permission of the finance departments, the guidelines said.