Kerala Finance Bill passes with tax increases

The Kerala Finance Bill, 2025, was passed by the Assembly on Tuesday without any major changes. This Bill includes the financial plans of the Kerala government for the fiscal year 2025-26. The new tax measures will start on April 1. Finance Minister K.N. Balagopal announced an amendment to set limits on court fees for criminal cases. Currently, fees in magistrate courts are capped at ₹250. The new amendment will set a maximum fee of ₹500 for District Courts and ₹1,000 for the High Court. Balagopal defended the tax proposals, saying they are reasonable and will not overly burden citizens. He noted that the increase in land tax is modest. For example, a person with 20 cents of land will pay ₹20 more, while someone with 10 acres will pay an additional ₹1,000. Opposition members from the UDF criticized the government, arguing that the new taxes are too high. They highlighted a 50% increase in basic land tax and claimed court fees have risen fivefold. The UDF warned that raising taxes on contract carriages could hurt the industry. The Finance Bill also modifies several existing laws, including the Kerala Court Fees Act and the Kerala Land Tax Act. It introduces a General Amnesty Scheme for settling arrears and a Flood Cess Amnesty to resolve past payments related to the Kerala Flood Cess.