Newly included 'flood cess' not from April announces FM Thomas Isaac

The CPI(M)-led LDF government in Kerala Wednesday said it would not impose from this April, the "flood cess" announced in the state budget to mobilise additional revenue. Replying during the discussion on the state budget in the Assembly, Finance Minister T M Thomas Isaac said the new cess would come into force only from the date of its notification.

"Usually, when a tax is announced in the budget, it will come into force from April 1. But the flood cess will come into effect only from the date of notification," he said, adding that necessary amendments, subject to conditions, would be made in this regard.

Explaining the reasons, the minister said that before introducing the 'flood cess', it should be discussed in the Goods and Services Tax Network, for which some more time was needed. Isaac on Wednesday also announced a special financial package of Rs 5,000 crore for Idukki to support and rebuild the high range district, which had suffered massive destruction during the August floods.

While presenting the budget for 2019-20 fiscal last week, Isaac had announced a one per cent flood cess for goods coming within the GST tax brackets of 12, 18 and 28 percents and a 0.25 per cent cess on all goods coming under the Fifth schedule of GST, including gold, silver and platinum ornaments on the value of supply for a two year period.

(With inputs from agencies.)