Thiruvananthapuram: Till November last year, Rs 740.7 crores have been collected from the state in the form of alcohol-fuel cess, which was introduced by the Kerala government for finding money to disburse welfare pensions. However, this is by no means a solution to the current problems, as the state requires at least Rs 800 crores every month to pay the welfare pensioners’. 

With the finance minister KN Balagopal preparing to introduce the new budget in the house on February 5, it remains to be seen whether the controversial cess tax will be removed or not.

The cess was actually constituted to generate the seed fund for the disbursal of welfare pensions. While a cess of Rs 20 is levied on every alcohol bottle priced between Rs 500 and Rs 999, a cess of Rs 40 is slapped on costlier alcohol. The recorded income till November 31 stood at Rs 139.92 crores (alcohol alone). The figures are expected to touch the Rs 400 crore mark by the end of the FY.

Similarly, a cess of Rs 2 each was levied on petrol and diesel. And the income in this regard till November 31 stood at Rs 660.78 crores. In the current financial year, the collections are expected to touch Rs 750 crores. With figures for four months yet to come in, the income in this category is expected to exceed the estimated figures. 

Hence, the money in both categories adds up to Rs 1,150 crores. However, around Rs 11,000 crores is required in a year to disburse pensions in the state.

Despite the opposition launching a protest, the cess wasn’t scrapped. The introduction of the cess is said to have further escalated the fuel prices and worsened the ‘inflation’. The Kerala government which is reeling under financial crisis is left with no option but to continue with cess.