Finance ministerKN Balagopalsaid that the government was committed to give enough funds toKIIFBto meet the unexpected slump in proceedings from motor vehicle tax and petroleum cess, following Covid-related Stress on states economy.
KIIFB is a unique finance model devised to meet developmental needs ofKerala. It invests in projects by sourcing funds from various agencies. There was a significant dip in the collection of motor vehicle tax and petroleum cess, the major source of assured funds for KIIFB.
Government has given relaxation to private bus operators for payment of tax in view of theCovidsituation. These extraneous factors cannot be a reason for the government to go back on its original promise, he said.
As per KIIFB Act, government is supposed to transfer a portion of the motor vehicle tax. According to this arrangement, KIIFBs share of motor vehicle tax has reached the maximum ceiling of 50% this year.