Tax will not be collected in the State on items such as those produced by the Kudumbasree units and items sold in small shops in small packets or sold ‘loose,’ Finance Minister K.N. Balagopal informed the Assembly on Tuesday.
Replying to the discussion on the Kerala Finance Bill in the House, Mr. Balagopal said confusion continues to prevail over the Union government decision to impose the 5% tax rate hike.
The State had conveyed its apprehensions to the Centre on multiple occasions, Mr. Balagopal said.
Chief Minister Pinarayi Vijayan also had written to Prime Minister Narendra Modi highlighting the State’s concerns, he said.
“’We don’t plan to collect tax by causing hardships to small-scale traders, consumers and small producers. There will be no problem in the State whatever confusion prevails,” Mr. Balagopal said, adding that despite the clarification issued by the Centre on the GST rate hike, traders in the State still lack clarity regarding the Central decision.
It is a common practice in small retail shops to ‘pre-pack’ essential commodities and keep them ready for sale. Such items will not be taxed, Mr. Balagopal later told The Hindu. ‘‘We have given directives in this regard. The Chief Minister also has made a note of this issue in his letter to the Prime Minister,’‘ he said.
The State government intends to intervene strongly to address problems faced by the public with regard to recovery measures faced under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, the Minister said.
The State Government had held discussions in this regard with the State Level Bankers' Committee (SLBC), he said.
