Kudumbasree products exempted from VAT
Kerala Finance Minister Vakkom Purushothaman told the State Assembly today that products of Kudumbasree self-help units and pappad had been exempted from the purview of Value Added Tax (VAT).
Winding up the debate on the Kerala Value Added Tax (Amendment) Bill, 2005, he said since 71 per cent of the state’s revenue came from sales tax, the government could not exempt all items from VAT.
Regarding the case of beedi leaves, he said the government had reduced the tax to four from the existing eight per cent and, if necessary, full exemption would be considered later.
Mr Purushothaman said the government had not introduced any fresh tax, while it tried its maximum to reduce the tax burden.
Taking part in the debate, Mr Kodiyeri Balakrishnan (CPI-M) said that the government had not reduced tax on items used by poor people, while it helped the upper class by reducing tax on luxuary items.
The Finance Minister said as the decisions were taken by the Empowered Committee, the State government was unable to reduce tax on all items.
Later, the House passed the bill by 33 votes to 20.
More: newkerala.com