Tax proposals for 2025-26 ‘minimal,’ reiterates Finance Minister K.N. Balagopal

Finance Minister K.N. Balagopal, while presenting the Kerala Finance Bill, 2025, in the State Legislative Assembly on Wednesday, reiterated that the new tax proposals for the 2025-26 fiscal were “minimal”.

On the Opposition UDF charge that the court fee hikes proposed in the Budget were too steep, Mr. Balagopal said the revenue expected from this component would not meet even a fraction of the financial needs of the courts.

Besides, the hikes were recommended by a panel consisting of judicial officers, a retired judge of the High Court, representatives of lawyers and the State Finance Secretary, he said.

In his February 7 Budget speech, Mr. Balagopal had pointed out that it had been decades since the court fees were revised.

The Finance Bill is introduced in the House to give effect to the financial proposals of the government for the coming financial year.

Referring to the additional resource mobilisation of ₹366 crore proposed in the Budget, he said that the contents of the Finance Bill, which contained the tax proposals for the 2025-26 fiscal, would scarcely serve to resolve the financial squeeze experienced by the State.

With regard to his Budget announcement on “substantial reduction” in the State’s fiscal difficulties, Mr. Balagopal said: “Saying that we are on a take-off phase doesn’t mean we’ve reached the other end, but we are on the runway and in an improved position.”

The Finance Bill was later referred to the Subject Committee.

A 50% hike in the land tax, expected to bring in an additional ₹100 crore, a slew of court fee revisions for raking in an additional ₹150 crore and a hike in the lifetime road tax of electric vehicles, expected to bring in ₹30 crore, are among the proposals.