Cabinet Eases pressure on Water, Revs up Tax on Luxury Cars

Published: 25th September 2014 06:02 AM  |   Last Updated: 25th September 2014 06:02 AM   |  A+A-

THIRUVANANTHAPURAM : Coming under pressure from various corners, including the KPCC president, to roll back the water tariff hike announced last week, the Cabinet on Wednesday brought in major modifications in the water tariff by raising the existing 10,000-litre slab to 15,000 litres. As part of various measures in view of financial crunch, the Cabinet also finalised proposals for additional revenue generation to the tune of `260 crore. The modifications in water tariff are expected to help additional revenue mobilisation of `174 crore, instead of `206 crore as expected from the previous hike. The remaining `32 crore will be provided as grant to KWA by the government. With the new modifications, there will no water charge for BPL consumers for up to 15,000 litres while for non-BPL consumers there will be no change in the existing charges for up to 15,000 litres, instead of the earlier 10,000 litres. Water charges will go up from 15,000 litres based on each slab. The new modifications will benefit a total of 7.49 lakh consumers out of the total 14.49 lakh consumers. The Cabinet has decided to increase commercial tax of luxury cars. With this, the commercial tax of cars priced above `20 lakh will go up by 5 pc making it 20 pc from the existing 15. The Cabinet also decided to increase the building tax of luxury houses and flats. As per the new decisions, building tax for houses above 3,000 sq ft and flats above 2,000 sq ft will go up. New slabs have been introduced for building tax in this sector.

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