[Thiruvananthapuram,Kerala] Kerala Proposes Fat tax’ for junk Food
A 14.5 per cent ‘fat tax’ on burgers, pizzas and other junk food and a Green tax for vehicles over 10 years have been proposed in Kerala s CPI(M)- led Left Front government’s maiden budget today
As the state faced a severe financial crisis, Finance Minister T M Thomas Issac presented the 2016-17 budget of the Pinarayi Vijayan government and said resources will be raised outside the budgetary framework through the Kerala Infrastructure Investment Fund Board (KIFB), making use of SEBI and RBI approved schemes.
The budget, which raised various monthly welfare pensions to Rs 1,000, proposes to raise funds through various means, including diverting a portion of the tax raised through Motor Vehicle tax and Petrol cess, to the KIFB.
It also imposed levies on various items including packed wheat products like atta, rava and maida. Coconut oil will also become dearer with a five per cent tax.
In a bid to discourage junk food culture, the 14.5 per cent ‘fat tax’ on burgers, pizzas and pasta served in branded restaurants was proposed by the government, in perhaps a first of its kind move, targeting an additional revenue of Rs 10 crore.
Stating that the state was passing through a severe financial crisis due to various factors, the budget proposed an ‘anti-slowdown package’ of Rs 12,000 crore for taking up various development and infrastructure projects like roads, bridges and IT parks.
Blaming the previous Congress-led UDF government for “very low” tax collection in the last five years, Issac said the budget was targeting a 25 per cent increase in tax collection every year.