'Burden on high income category'

KOCHI: The state budget is a fine balancing act, which is filled with sops for the common man, while increasing the tax burden on the other categories of existing tax payers, observed Vivek Krishna Govind, partner at the chartered accountancy firm Varma & Varma.
According to Govind, rain harvesting and waste disposal system made mandatory for newly constructed houses above 2,000 square feet will affect the high income families."Luxury marriages, those conducted at three star hotels and above or auditoriums having more than 500 seats, will be taxed at 3% on marriage expenses, which and amount so collected will be used for providing assistance for marriage of economically backward girls will affect this group. Increase in VAT from 13.5% to 14.5% in respect of luxury goods, vehicles and white goods will also be a burden for the high income segment," he said.
On the other side, the middle income group with up to Rs 3 lakh per annum will have many ways to save money.
"Introduction of Thripthi restaurant scheme, where meals will be provided at Rs 20, will be beneficial to this group. Decision to increase the number of Neethi, Nanma and Triveni supermarkets will also help this group save money," Govind added.