Thiruvananthapuram: The Kerala government would implement the flood cess from June 1 in a bid to boost its coffers to rebuild the state wrecked by the 2018 floods. A notification in this regard was issued on Monday. With the cess, prices of several articles ranging from medicines to LCD TVs are set to go up.
The government aims to collect Rs 1,000 crore in two years with the one per cent flood cess to be slapped on all commodities that have a Goods and Services Tax (GST) of more than five per cent. Prices of 928 items that fall under the 12 per cent, 18 per cent and 28 per cent GST slabs are likely to see an increase.
Finance Minister Thomas Isaac had announced the flood cess during his budget presentation earlier this year. Though the budget had recommended to implement the cess from April 1, it was postponed due to the Lok Sabha polls.
Hereafter, the bill will include flood cess apart from the GST.
Even though the GST of gold and silver is below five per cent, these have been clamped with 0.25 per cent cess. People who buy gold in small quantities will not be affected by this. However, for those who buy in bulk, especially for weddings, the flood cess would prove to be an additional burden.
The revenue from the cess would be used to develop basic facilities at flood-hit villages.
Items to be costlier
Medicines, marble, granite, tooth paste, bag, wood products, cloth material above Rs 1,000, mobile phone, computer, laptop, LED bulb, vehicles, cycle, toys, grinder, shoe, cement, mike, floor tiles, fans, refrigerator, electric motor, LED TV, LCD TV, electric switch, watch, paint, soap, pipe, bathroom fittings, tyre, automobile parts, air conditioner, microwave oven, digital camera, dish washer, washing machine, condensed milk, jam, carpet, steel utensils, lottery, chocolate, cake, ice cream, rubber products, cigarette, plywood, glass, water tank, stove, musical instruments, bed, and cool drinks.
