Kerala's tax proposals for 2025-26 are minimal

Finance Minister K.N. Balagopal presented the Kerala Finance Bill for 2025 in the State Legislative Assembly on Wednesday. He stressed that the new tax proposals for the fiscal year 2025-26 are minimal. Addressing criticism from the Opposition UDF about steep court fee hikes, Balagopal explained that the additional revenue from these increases would not significantly meet the courts' financial needs. He noted that the fee changes were recommended by a panel of experts, including judicial officers and lawyers. Balagopal also remarked that it has been decades since court fees were last revised. He mentioned an expected additional revenue of ₹366 crore in the Budget, but stated that the Finance Bill’s tax proposals would hardly alleviate the state's financial challenges. He highlighted his Budget announcement about reducing the state’s fiscal difficulties, comparing the situation to being on a runway ready for take-off, indicating improvement but recognizing that more work is needed. The Finance Bill includes a 50% increase in land tax, projected to raise an extra ₹100 crore, along with revisions to court fees expected to generate ₹150 crore. There is also a planned increase in the lifetime road tax for electric vehicles, expected to bring in ₹30 crore. The Finance Bill was sent to the Subject Committee for review.