The Cabinet had approved a new legislation in view of the court order and had sent it for the President’s prior assent. The Government had also filed a special leave petition (SLP) before the court seeking a direction that its order striking down entry tax would not have any retrospective effect.

The Minister was replying to the debate on the Kerala Finance Bill and Kerala Finance (No. 2) Bill that gave effect to the financial proposals of the Government in the Budget for the current year. The House later referred the Bill to the Subject Committee.

Dr. Isaac said the reduction of tax proposed in the Budget on the sale of flats by one or two per cent would be considered at the Committee. Practical arrangements for setting off tax paid on work contracts for flats could also be considered at the report stage.

He said the State Government was drawing up a health insurance scheme to make use of the Central subsidy available for the purpose. The Government was considering a scheme that would strengthen the public healthcare system and at the same time provide insurance cover for temporary loss of employment on account of illness. The healthcare system would offer quality care free of charge.

The Minister said a controversy had arisen over minority rights in the State because minority communities in the State tried to change the existing understandings and consensus over such rights. The CPI(M) had supported legislation upholding minority rights in the educational field to ensure protection of minorities in the BJP-ruled States. It knew that the law would cause problems in Kerala.