THIRUVANANTHAPURAM: In order to mobilise resources, an increase in Value Added Tax from 4 per cent to 5 per cent on industrial inputs, capital goods and items of mass consumption and an increase from 12.5 per cent to 13.5 per cent on all other items have been announced in the state budget.Also, the road tax for vehicles will be directly proportional to the cost of the vehicles which is in practice in other states. As per the new norms, vehicles up to purchase value of Rs 5 lakh will attract 6 per cent tax, those valued up to Rs 10 lakh will bear 8 per cent tax while it will be 10 per cent for vehicles costing up to 15 lakh. All vehicles costing beyond Rs 15 lakh will attract a 15 per cent road tax. This alone will add Rs 115 crore to the state exchequer.While intra ocular lens used for cataract surgery, heart valve and stent used in cardiac surgery have been totally exempted from tax. On the other hand, the land tax also has been increased with existing tax rates getting doubled and registration fees as per the Indian Partnership Act also has been hiked. A 2 per cent stamp duty will be imposed as registration fees for Power of Attorney documents on immovable properties not in the name of family members. Anomalies on stamp duty with regard to family deeds, gift deeds and sale deeds will be rectified by unifying the registration fees.Tax on tobacco products will go up from the existing 12.5 per cent to 15 per cent. In the case of pan masala and related products, the tax will go up from 20 per cent to 22.5 per cent. For Indian Made Foreign Liquor, the social security cess is flagged up from 6 per cent to 10 per cent, which will strengthen the revenue receipts by Rs 90 crore. The VAT on crushed metal which is pegged at 13.5 per cent will be restructured on the basis of the size of different crushers. To bring down the consumption of plastic carry bags, a hefty 20 per cent tax has been imposed in lieu of 12.5 per cent, but for the cloth bags the entire tax has been waived.
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