The Hindu : UDF MLAs oppose budget proposals

Online edition of India's National Newspaper
Wednesday, Jan 28, 2004

Kerala

Kerala

UDF MLAs oppose budget proposals

By Our Special Correspondent

THIRUVANANTHAPURAM, JAN. 27. Ruling UDF MLAs today expressed their opposition to two major budget proposals relating to agriculture income tax and entry tax on milk and milk products.

Participating in the three-day general debate on the budget, which began in the Assembly today, Kerala Congress(Jacob) leader, Johnny Nellore, said that the Finance Minister's proposal in his budget speech to amend the rates of agriculture income tax was unscientific. He said the proposal to levy a 10 per cent tax on agriculture income exceeding Rs. 40,000 was not acceptable, as it did not take into account the higher cost of production especially in the case of rubber. The proposal was a big blow to the farmers, he pointed out.

Mr. Nellore also apposed the move to limit sales tax concession for milk and milk products only to cooperatives and wanted the minister to consider including nearly one lakh small diary farmers, including women societies, which held licenses under the Milk and Milk Products Order (MMPO) with the ambit of the concessions he had proposed. He said that he was opposed to the inclusion of milk in the first schedule of the Kerala General Sales Tax Act taxable at 3 per cent and the exemption given to cooperatives alone could not be justified owing to their nominal presence.

The Congress MLA, Mohammedali, welcomed the Finance Minister's proposal to impose a 3 per cent entry tax on milk and urged him not to reconsider his decision. Pointing out to media reports on the poor quality of milk sold in the State, he said that the entry tax would check the flow of poor quality milk from neighbouring states.

Another Congress MLA, V.J. Paulose, however, opposed the move to impose the entry tax on milk. "It would be better if the Minister were to reconsider this proposal in view of the fact that the tax would only push up milk prices," he said.

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