Also, the state cabinet ministers will take a 20 percent cut in salary till the end of this fiscal, said Chief Minister Oommen Chandy.
“Contrary to news reports, there is not going to be any freeze on recruitments to government jobs. We do have financial constraints and to deal with that we have increased the taxes and mind you, this is not going to affect the ordinary man,” said Chandy to reporters after the weekly cabinet meeting here.
He said that on account of the 25 percent hike in taxes on liquor, 20 percent hike in beer and wine, and eight percent increase in tobacco products, there is going to be an additional revenue of Rs.1,494 crore.
“We have not hiked the charges for those in the below poverty line category and also for up to monthly use of 10 kilolitres in the above poverty line category consumers. For those who use above 10 kilolitres of water every month, there will be an increase of 50 percent in water charges. Through this increase we expect to get an additional revenue of Rs.205 crore,” said Chandy.
He, however, added that there will be no increase in fees charged in the education sector but there will be an increase in land registration and stamp duty charges.
He said a high level committee has been formed to initiate steps to raise funds from financial markets.
State CPI-M secretary Pinarayi Vijayan told reporters that the tax hike is a blow on the people.
“We will not allow this to happen and we will organise protests by organising the people against this anti-people policy of the Chandy government,” said Vijayan.