Thiruvananthapuram: On a move to cope with the state’s prevailing financial crisis, the Cabinet, on Wednesday, decided to raise the water tariff by 50 percent. The cabinet has also decided to hike the taxes on cigarette and liquor
A cabinet sub-committee was deputed later to decide on increasing the fair value of land. The stamp duty has also been raised.
There have been reports that in the next cabinet meeting, there will be discussion on levying additional tax on those owning luxury residences and more than one car.
The tariff of water has been raised by 50 percent. Rs 2 is the hike rate for each kilolitre exceeding 10,000 litres.
Accordingly, the cost of each additional litre of water will be raised to Rs 6 from Rs 4. However, the hike will not be applicable to those consuming less than 10,000 litres. The cabinet approved the recommendations put for the by irrigation department in this regard.
By levying additional tax on IMFL, beer, wine and cigarette, the Finance Department expects to generate additional revenue of Rs 1,000 crore mean while the tax on IMFL is likely to go up by 20 percentage.