Bhopal, Feb 26 (UNI) While providing tax relief of nearly Rs 180 crore, fresh taxation to net additional revenue of Rs 54 crore is proposed in the Madhya Pradesh Budget for 2007-08.
Presenting the surplus budget in the state Assembly today, Finance Minister Raghavji proposed to include diesel among the items that would be cheaper. Value Added Tax on diesel is to be reduced from 28.75 per cent to 26 per cent, placing a burden of Rs 178 crore on the state exchequer.
Apparently with an eye on the coming byelections to two parliamentary and an assembly constituency and next year's Assembly poll, about 42 per cent of the budgetary allocation was earmarked for roads, power, potable water and agriculture, which were the key issues that brought the BJP to power in December 2003.
As part of rationalisation of taxes, the budget sought to do away with half per cent tax.
Two per cent tax is proposed on iron and steel that presently attract one-and-a-half and one per cent respectively.
Tax is to be raised from one to two per cent on utensils, soaps and other toiletry, scooters, autorickshaws, tyres, tubes, crockery, readymade garments, hosiery, provisions such as betelnut, dry fruit, spices and jaggery.
Other items to be dearer include telecommunication towers, communication equipment, furniture, explosives, wallets, ladies' handbags, vanity bags, suitcases, attaches, refrigerators, air-conditioners, coolers and their parts, tendu leaf and lubricants. Tax rate is proposed to be doubled from one to two per cent on these items.
Indian Made Foreign Liquor and beer, that were at present exempted from entry tax, would be subjected to two per cent tax.
Similarly, entry tax on glass, glass sheets and coal is proposed to be raised from one per cent to two per cent.
Tax on 'thandai' and squash is sought to be lowered from 12.5 per cent to four, thereby placing a burden of Rs 16 lakh on the exchequer. Lac has been exempted from VAT, it earlier attracted four per cent.
UNI
Presenting the surplus budget in the state Assembly today, Finance Minister Raghavji proposed to include diesel among the items that would be cheaper. Value Added Tax on diesel is to be reduced from 28.75 per cent to 26 per cent, placing a burden of Rs 178 crore on the state exchequer.
Apparently with an eye on the coming byelections to two parliamentary and an assembly constituency and next year's Assembly poll, about 42 per cent of the budgetary allocation was earmarked for roads, power, potable water and agriculture, which were the key issues that brought the BJP to power in December 2003.
As part of rationalisation of taxes, the budget sought to do away with half per cent tax.
Two per cent tax is proposed on iron and steel that presently attract one-and-a-half and one per cent respectively.
Tax is to be raised from one to two per cent on utensils, soaps and other toiletry, scooters, autorickshaws, tyres, tubes, crockery, readymade garments, hosiery, provisions such as betelnut, dry fruit, spices and jaggery.
Other items to be dearer include telecommunication towers, communication equipment, furniture, explosives, wallets, ladies' handbags, vanity bags, suitcases, attaches, refrigerators, air-conditioners, coolers and their parts, tendu leaf and lubricants. Tax rate is proposed to be doubled from one to two per cent on these items.
Indian Made Foreign Liquor and beer, that were at present exempted from entry tax, would be subjected to two per cent tax.
Similarly, entry tax on glass, glass sheets and coal is proposed to be raised from one per cent to two per cent.
Tax on 'thandai' and squash is sought to be lowered from 12.5 per cent to four, thereby placing a burden of Rs 16 lakh on the exchequer. Lac has been exempted from VAT, it earlier attracted four per cent.
UNI
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