The Maharashtra government today presented its annual budget for 2006-07 with a hike in excise duty on liquor and motor vehicle tax on four-wheelers to mop up an additional Rs 500 crore and clock a revenue surplus of about Rs 305 crore. Presenting his seventh budget in the state assembly, state finance minister Jayantrao Patil announced a slew of measures to control costs, improve governance and create additional infrastructure to attract investments to the state. The state government is expecting a revenue of Rs 59,145 crore while its expenditure is pegged at Rs 58,840.30 crore for FY07. It had estimated a revenue surplus of Rs 265 crore for the year ending March 31, 2006. However, the unprecedented floods last July, the package for farmers in distress and increased power subsidy made the state report a revenue deficit of Rs 1,419 crore for the current fiscal.Elaborating on the tax proposals, Patil said the minimum excise duty on country liquor will be Rs 155 per proof litre instead of the earlier level of Rs 150.25. The minimum excise duty on Indian Made Foreign liquor (IMFL) will be Rs 160 per litre (Rs 150 being the old rate). The duty on mild beer would be Rs 15 per bulk litre, up from the Rs 12 charged earlier.The growing population of motor vehicles has come handy for finance minister to charge higher motor vehicle tax (MVT). Privately-owned motor vehicles will now have to pay 7% of cost as MVT as against the earlier 4%. Patil defended the hike in MVT saying that neighbouring states charge between 4-9% on similar vehicles.The government expects stamp duty and registration fee collections to touch Rs 5,000 crore in 2006-07. It has provided duty relief for flat owners and co-operative housing societies. Now, they will pay a flat Rs 100 fee for the first Rs 2.5 lakh while purchasing instead of the 0.5% of purchase value. The deposits on title, pledge, and hypothetication has been slashed to 0.1% from 0.5%.Cable TV sector has come under Patil's scanner to raise addional revenue. Now, entertainment duty applicable on cable television will increase by 50%.
