Kerala to levy 1 per cent flood tax from June 1

Representational image

Kerala will levy a 1 per cent tax on most goods and services in the state from June 1 to raise funds for the rebuilding of the state after the devastation caused by floods which happened last year.

The state had secured permission from federal indirect tax body, the GST council, to levy the tax. The state intends to raise close to Rs 600 crore from the tax.

As the state had limited resources to rebuild the state, Kerala decided to go for the tax.

Kerala incurred losses of Rs 20000-25000 crore to crops. The unorganised sector also came to a standstill because of the floods.

It is not known if Odisha which recently suffered cyclone Fani and may have suffered losses of close to Rs 17000 crore, will consider this option or not.

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