Thiruvananthapuram,Ā June 20:
Kerala Chief Minister V D Satheesan on Friday announced a series of tax relief measures, amnesty schemes and revisions to vehicle taxes while presenting the revised state Budget in the Assembly, saying the steps are aimed at easing the burden on taxpayers, supporting businesses and improving revenue mobilisation.
The revised Budget estimates for 2026-27 project revenue receipts of Rs 1,69,646.37 crore against revenue expenditure of Rs 2,05,001.67 crore, resulting in a revenue deficit of Rs 35,355.30 crore.
The Budget estimates capital expenditure (Net) at Rs 19,651.41 crore, public debt (Net) at Rs 52,364.13 crore, and an overall deficit of Rs 41.23 crore. The government has also announced additional expenditure of Rs 1,080.95 crore, taking the cumulative deficit at the end of the year to Rs 1,504.63 crore.
One of the key tax relief announcements was the Flood Cess Arrears Settlement Scheme, 2026.
The chief minister, who holds finance portfolio, noted that although the one per cent Flood Cess levied on GST for Business-to-Customer (B2C) supplies between August 1, 2019 and July 31, 2021 had ended, substantial arrears remained unpaid.
To help businesses clear these dues, the government announced that taxpayers who pay the entire outstanding principal amount of Flood Cess will receive a complete waiver of interest and penalty.