In the era of GST, it seeks huge non-tax revenue mop up

Finance Minister T.M. Thomas Isaac on Friday presented his Budget for 2018-19 envisaging additional revenue mobilisation to the tune of ₹1,100 crore and a hefty allocation for a slew of social welfare schemes for a cross section of people.

Presenting his ninth budget in the Assembly, the Finance Minister announced a ₹2,000-crore package for the coastal areas in the backdrop of Cyclone Ockhi disaster, covering disaster mitigation programmes, tackling coastal erosion, development of secondary ports, and coastal hospitals. He allocated ₹2,500 crore for housing projects under the LIFE mission. These two hefty allocations have been made with the hope that it would give a boost to development.

As part of his promise for a gender budget, Dr. Isaac made an overall allocation of ₹1,960 crore for various schemes of which women were sole beneficiaries.

Despite his limitations in tinkering with tax rates under the GST regime, the Finance Minister sought to mobilise additional resources through hike in land tax, settlement of undervaluation cases dating back to 1986 by setting up settlement commissions in each of the 14 districts, a 10 per cent hike in fair value of land, and rationalising the stamp duty on partition, gift, separation and release deeds that would fetch him over ₹400 crore in additional revenue.

In the backdrop of the recent cases related to motor vehicle registration fraud, the Finance Minister has introduced an amnesty scheme that will enable luxury car owners to pay up the State tax and avoid legal action. The scheme would fetch ₹100 crore in revenue.

Dr. Isaac has also mopped up ₹60 crore by allowing the sale of foreign made foreign liquor and foreign made wine through the outlets of the Kerala State Beverages Corporation.