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Tea, coffee growers exempted from agri-income tax in Kerala

Our Bureau

Thiruvananthapuram , April 7

THE State Government has decided to exempt tea and coffee growers from agriculture income tax for two years.

The exemption, however, would not be applicable to plantations that are registered as companies, the Chief Minister, Mr Oommen Chandy, told reporters after a Cabinet meeting on Thursday. The tax exemption would be effective for 2003-04 and 2004-05 and the Government would issue a notification in this respect shortly, he said.

The Cabinet also approved a Rs 2.25-crore scheme submitted by the Kannur district Collector for rainwater harvesting and ground water recharging for the benefit of Ezhimala Naval Academy.

The Chief Minister said that the State Government had already spent Rs 40 crore to provide roads, water supply and electricity to the academy. The Government would extend further support to the academy, if necessary, he added.

On the controversies surrounding tsunami rehabilitation activities in the affected areas, he said there were no deliberate delays on the part of the Government in constructing houses for tsunami victims.Some technical factors specific to the region and local disputes about the genuine beneficiaries have come in the way of taking up the construction works in Alappad panchayat in Alappuzha district. The affected people in the area wanted houses to be built on the same sites and hence soil testing and piling work had to be undertaken.

This delayed construction activities and also contributed to the escalation of costs from original estimates. On the other hand, the Government could complete the construction of houses in Edavanakkad panchayat of Ernakulam district where the people moved to new sites, the Chief Minister said.

On the continuing agitation of traders against the implementation of value-added tax (VAT) system in the State, he said as many as 21 States had gone in for the new regime from April 1 this year.

He noted that the Finance Minister had said in the State Assembly that a committee would be formed with trade representatives to study the problems arising out of the VAT system and that there would not be any penal action against the traders for six months till the committee submits its report.

However, traders insist that VAT should be set aside before the committee is formed. In any case, the Government has an open mind on the issue, Mr Chandy said.

On the finding by the State Level Bankers' Committee that the Fisheries Department is yet to provide a list of beneficiaries under the Rajiv Gandhi Tsunami Package, he said the Government would look into the matter.

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