Turnover tax withdrawn

By Our Special Correspondent

THIRUVANANTHAPURAM, NOV. 12. The Finance Minister, Mr. K. Sankaranarayanan, today announced withdrawal of the turnover tax on all items except Indian Made Foreign Liquor (IMFL) and petroleum products, imposed in this year's revised budget.

Replying to the discussion on the motion for referring the Kerala Finance Bill, 2001, to the Subject Committee, he said he was doing this in response to appeals from the members of the House, both in the ruling front and the Opposition. The Government had expected a revenue of Rs. 90 crores from the turnover tax.

He said the Government would soon be releasing Rs. 222 crores towards this year's first instalment of fund allocation to the local bodies.

Referring to the complaint raised by several members that the benefits of the reduction in purchase tax on rubber were yet to reach the farmers, he said the Government was fully aware of the issue. Some intermediaries were cutting into the act (to deprive the rubber growers of the benefit the Government had intended for them).

To prevent this, the Government was examining a proposal to strengthen procurement through societies and agencies representing the farmers themselves. He refuted an allegation by Mr. P.C. George, Kerala Congress(J) MLA, that the agency, Rubco, was being purposefully kept out of the procurement exercise. It was not the Government's intention to keep out any agency which could contribute to the cause of ensuring a fair price to the farmers for their produce, he added.

Mr. Sankaranarayanan conceded that the liquor mafia was beginning to devise new strategies to overcome the hurdles caused by the Government's policy of putting the Kerala State Beverages Corporation (KSBC) in full charge of the trade in IMFL.

He said he was ready to give all the credit due to the LDF for the liquor policy it had introduced. The UDF Government was fully committed to strengthening the implementation of this policy, because of which the Government had been assured of a handsome additional revenue. ``But, I would also like to tell the Opposition that its hope about this policy fetching an annual revenue of Rs. 2,000 crores for the Government is a wild dream. So far, it had brought in an additional revenue of Rs. 600 crores,'' he said.

The House referred the Finance Bill, 2001, to the Subject Committee.

Send this article to Friends by E-Mail

Section  : Southern States
Previous : Suspension of 3 LDF MLAs withdrawn
Next     : Govt. not to invest in PSUs