The prices of movie tickets, beer and wine will be hiked and a ‘flood cess’ will be levied in the cash-strapped Kerala, State Finance Minister T.M. Thomas Isaac announced on Thursday.

The CPI(M)-led LDF government presented its first post-flood budget on Thursday in an effort to mobilise additional resources to rebuild the State.

Giving thrust to a massive rebuilding exercise, Mr. Issac proposed 25 new projects to resurrect Kerala after the devastation caused by the deadliest flood of the century last August.

One per cent ‘Kerala Flood Cess’ will be levied on goods coming within the GST tax bracket of 12%, 18% and 28%. It will be imposed on the value of supply. 0.25% flood cess will be levied on all goods coming under the fifth schedule including gold, silver and platinum ornaments on the value of supply. All services will attract one per cent cess.

To avoid cascading due to tax on tax, the government has decided to levy the cess on the value of intra-state supply made within the State by registered dealers, at the last supply point. Mr. Issac said ₹600 crores additional revenue per year is expected through the cess.

The tax rate on the first sale of all kinds of foreign liquor including beer and wine has been increased by 2%.

The government has also decided to allow local bodies to collect entertainment tax on movie tickets up to 10 per cent.