Fat Tax, Green Cess in God’s Own Country, Kerala

Junk food in Kerala restaurants will become costlier with the state government's proposal to impose 14.5 percent “fat tax” in the 2016-2017 budget. The proposed tax will impact chains like McDonald's, Subway, Dominos, Pizza Hut and others.

The budget also proposed a green cess on 10-year old diesel cars and 5 percent tax on packaged foods. Stating that Kerala is in a severe financial crisis, state Finance Minister TM Thomas Isaac, proposed an ‘anti-slowdown package' of Rs 12,000 crore for infrastructure projects like roads, bridges and IT parks. The government is also looking to invest Rs 1 lakh crore across various sectors over the next five years.

Thomas targets a 25 percent increase in the tax revenue every year through trade friendly and anti-corruption measures.

Another highlight is the increase in the welfare pension amount to Rs 1,000 and the state government has earmarked Rs 1,000 crore for the same.

The budget proposes to expand the the public distribution system, limited to below poverty line (BPL) families, to those registered under the National Rural Employment Guarantee Scheme.

Kerala also aims to open government schools in 140 assembly constituencies and has set aside Rs 1,000 crore to upgrade the standard of schools in the state over the next five years.

Products like aata, maida, rice will be costlier in the state with the proposal to impose five per cent tax on packed wheat products and basmati rice. The state government will earn an additional revenue of Rs 60 crore, the state finance minister said.

The government also proposed an increase in stamp duty on land registration to 8 percent from the existing 6 percent criterion.