THIRUVANANTHAPURAM: In the last budget of the incumbent UDF government that has set apart Rs 500 crore for Rubber Price Stabilisation fund, there has been an announcement of tax concession to the tune of Rs 330.45 crore.
There are also instructions to sort out the ambiquity in various tax structures and simply the taxing procedures. It has been decided to forgo the VAT for life saving drugs sold through Karunya Pharmacy and Neethi Stores.
In the 2016-17 financial year all companies will be exempted from agricultural income tax. The current tax ranging from 35 to 50 percent will be consolidated into 30 percent
To encourage the use of Liquefied Natural Gas, the tax exemption given to all Liquefied Natural Gas including degasified LNG, last year will continue this year also. With retrospective effect, tax exemption will be given to the sale of food items prepared by jail inmates.
Pots, flower pots, utensils, statues, idols and earth oven made of clay will be exempted from taxes. The tax concession for concrete door/window frames will be applicable to such frames concreted using iron rods.
14.5 percent tax for instruments such as white cane, electronic cane and Brain printer used by visually challenged has been done away with. For automated robotic car parking system, the tax has been reduced from 14.5 percent to 5 percent.
Cleaning liquids technically developed by Kerala Agricultural University or other recognised agencies to remove pesticide residues in vegetables has been exempted from tax.
The government will also device scheme to refund VAT being paid by Handloom cooperative societies.