The Kerala Government is keenly looking forward to the Great Kerala Shopping Utsav (GKSU), which is bringing together the media houses and trader community in the state, said Finance Minister Thomas Isaac. The utsav, which begins on November 15, would give a much-needed impetus to the markets in the state following the setbacks caused by the recent deluge. Talking to Manorama, the minister promised unflinching support to the one-month long shopping fiesta.
Excerpts from the interview:
Tax revenue during this onam season?
Normally, tax collection is at the highest in the month of onam. But this year, the onam month recorded the lowest tax revenue. Business is still in a limbo after heavy rains and floods ravaged the state. Close to 10 per cent of shops in the state were directly affected by the deluge. But there is a slight spike in tax revenue as many people are buying consumer durables to replace the household items and electronic equipment which were damaged in the floods. But that’s not enough. The commercial activities should be robust to give a fillip to the state economy.
Why did the government stop GKSF (Great Kerala Shopping Festival)?
The government organized the festival for the past 10 years, and its pivotal aim was to usher in a second shopping season after Onam. Shopping in Kerala touches a higher trajectory during the months of November and December as many Keralites, residing in foreign countries, visit their home state during that period. Moreover, the tourist season in the state and Sabarimala pilgrimage fall in these two months. The festival’s goal was to create an atmosphere for shopping for Sabarimala pilgrims and tourists coming from metro cities like Mumbai, part from local customers. But the tourists were not keen on shopping in Kerala. Only the participation of Keralites increased. The government decided to bring down the curtain on the festival as we couldn’t achieve the prescribed goals.
What’s the contribution of consumer market sector in tax revenue growth?
This segment has the highest potential in terms of tax collection after the petroleum and beverages sectors. The state’s consumer market has a high standing when compared to other states in the country. The NRK remittances, mainly from foreign countries, are reflected in the consumer market of the state.
The tax (GST) collected is utilized for the development of the state itself. If the tax revenue dips, it would adversely affect the revenue and fiscal deficits projected in the budget. The development projects will also be hit. So, it is imperative to give a boost to the business sector. The efforts of the media on this front is really appreciative.
The strengthening of US dollar and Gulf currencies is a good sign, isn’t it?
The foreign remittances were always the mainstay of the state economy. More money has flowed into the state following the strengthening of dollar, euro, dirham and dinar, and that would eventually reach the market. Let GKSU make great strides as the business activities would pick up after the lull. The government will definitely consider ways and means to back the utsav.
