Guwahati, July 11: A Rs 1542.71-crore deficit Assam budget for 2011-12 was presented by chief minister Tarun Gogoi in the assembly today (Jul 11) making alcohol, tobacco and tobacco products costlier and LPG cylinders marginally cheaper.

To reduce the impact of the hike of price of LPG domestic cooking cylinder by the Centre, a tax exemption of Rs 14 per cylinder was given by Gogoi, who also holds the finance portfolio.

With an opening deficit balance of Rs 4505.26 crore, the budget estimate for transactions was Rs 2962.55 crore during the year, Gogoi said presenting the first budget of his third term as chief minister.

To discourage consumption of alcohol, the VAT rate on foreign liquor and country spirit was raised from 27 per cent to 30 per cent.

With a view to discourage consumption of tobacco and tobacco products, including gutka and similar products, the VAT rate was raised from 13.5 per cent to 20 per cent.

The rate of tax on declared goods such as bitumen, tea, bamboo and furnace oil was increased from four per cent to five per cent generating additional revenue of Rs 20 crore per year.

To offset the impact of increase in cess on green tea leaves on tea exported, he said, the deduction from agricultural income for computation of agricultural income tax of was raised from Rs five to Rs six for every kg of tea exported through the inland container depot (ICD) Amingaon here.

PTI