Date:06/07/2007 URL: http://www.thehindu.com/2007/07/06/stories/2007070655340500.htm

Kerala - Thiruvananthapuram

‘Government has banking plans’

Special Correspondent

THIRUVANANTHAPURAM: The State Government is planning to enter the banking industry, Minister for Finance T.M. Thomas Isaac has said.

Replying to questions in the Assembly on Thursday, Dr. Isaac said the Government was keen on having stakes in the banking industry, but the Kerala State Financial Enterprises would not start banking operations. The institution would open 20 branches after computerisation. The Government was planning to liberalise guarantee norms for KSFE chits.

It was planning to introduce a law to regulate the running of chits, he said. Dr. Isaac said four per cent tax was being levied for life-saving drugs and 12.5 per cent on 14 tobacco products. The tax on granite and metal was raised from four per cent to 12 per cent. The monthly income from 81 check posts was Rs. 17.89 crore. Returns from Kerala lottery in 2005-06 were Rs. 237.28 crore and 2006-07, 236.26 crore. Lucky VAT scheme would be made more attractive from August.

Draw of coupons would be held during Onam, Vishu and Christmas seasons in all districts. Steps had been taken to end the delay in clearing sales tax appeals. The authorities had been directed to clear 100 appeals every month. After appeal, orders would be intimated to the persons n two months, he said.