Kerala Budget 2010 Highlights

Kerala’s budget for 2010-11 claims to be green, lays emphasis on higher education and the IT sector, and refuses to toe the Centre’s line on increasing VAT rates to compensate for the reduction in CST rates from 4 per cent to 2 per cent that has caused revenue loss to states.

The highlights are:

* Tax on beer and wine reduced by 10 percent.
* Tax on liquor other types of liquor increased by 10 percent.
* Stamp duty registration of property sales reduced on notified fair value of land. Surcharge in this regard stands abolished.
* The effective rate of stamp duty, surcharge and registration fee is down to 11 per in City Corporation areas, 10 percent in municipal areas and 9 percent in panchayat areas.
* Direct to Home services will be taxed under the luxury tax bracket by one percent on gross charges.
* Cable television operators with less than 5000 connections will be exempt from luxury tax.
* 8 percent increase in life time tax on motor cars and omni buses with engine capacity above 1500cc
* Autorickshaws can pay vehicle tax on lump-sum for five years. The rate is Rs. 2000. One-shot settlement will be extended to payment of motor vehicle arrears too.
* Luxury tax on hotel rooms reduced by 2.5 percentage points, new rates are no 7.5 percent and 12.5 percent
* VAT on sugar and textiles to remain the same. Imported sugar will be exempt from tax.