THIRUVANANTHAPURAM: TK Jose, Additional Chief Secretary, Department of Water Resources, has issued an order increasing the base rate of water tax by five per cent annually as part of the reforms proposed by the Center as a tool for states to borrow additional loan in the wake of COVID crisis. The order, issued on the 10th of this month, states that the increase will take effect in the next financial year.

However, Water Resources Minister K.S. Krishnankutty said that water tax will not be increased immediately. It is learned that the order was issued to take a loan from the Center to deal with the financial crisis caused by COVID. One of the central proposals to increase the credit limit is to increase the water tax. The order was issued to inform the Center. The cabinet meeting will decide on raising the water tax. The minister said it was not possible to say whether it would happen before April.