Keral govt’s plan to collect Rs 600 crore through flood cess hit

By: |
Published: June 26, 2019 4:40:14 AM

State finance minister Thomas Isaac had been counting on garnering Rs 600 crore in the current fiscal through flood cess for rebuilding the state’s infrastructure ravaged by the devastating floods of 2018.

flood, kerala flood, gst, gst cess, union budget 2019, union budget 2019 indiaThe GST Council had in-principle cleared the Kerala government’s plea for levying a 1% flood cess

The Kerala government will not be able to go ahead with its plans to collect 1% flood cess from next week.

State finance minister Thomas Isaac had been counting on garnering Rs 600 crore in the current fiscal through flood cess for rebuilding the state’s infrastructure ravaged by the devastating floods of 2018.
The GST Council had in-principle cleared the Kerala government’s plea for levying a 1% flood cess, but the state is yet to receive the official ratification papers from the Union finance ministry. Without this, the state cannot go ahead with cess collection from July 1.

“The delay is because the finance ministry is busy with the Union Budget exercise. Even if the ministry order lands by July end, Kerala may not be able to implement it from August 1 since the software systems of trading community across the state need to be put in sync with the new tax format,” a senior state finance department official told FE.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1GST Council meet: Your essential items may not get cheaper anytime soon; no GST rate relief on cards
2Q4FY20 GDP shows slowdown deepening, demand weakening due to coronavirus
3PM Modi hails Rs 20 lakh crore package a ‘major step’ in making India Atamnirbhar