Gujarat transport bus fares to get cheaper, no rise in LPG rates

In a relief to people using the state transport bus system for travelling, the Gujarat government today proposed 10 per cent reduction in passenger tax in Gujarat State Road Transport Corporation (GSRTC) buses. Furthermore, the state government also assured the people that in the current fiscal there will not be any increase in price of LPG for domestic use in the state.

Finance minister Saurabh Patel today also proposed hike in taxes for ordinary and luxury omnibus having seating capacity of 12 passengers and above.

Patel told the state Assembly that with a view to providing relief to people of the state travelling through GSRTC buses he proposes to reduce the passenger tax rate from 17.5 per cent to 7.5 per cent for the budget year 2014-15. To implement this change necessary amendments would be made in the Gujarat Motor Vehicles Tax (Passenger Tax) Act, 1958. "As a result of reduction to the extent of 10 per cent in the tax burden of the state transport buses, the fares of the state transport buses would get reduced and about two million passengers travelling daily in these buses would be benefitted," Patel added.

Due to reduction on passenger tax, the state government revenue would be reduced by Rs 150 crore annually and about Rs 100 crore in current financial year. Patel, meanwhile, proposed hike in the motor vehicle taxes on designated omnibuses both ordinary and luxury or tourist designated omnibus carrying 12 or more passengers. The hike in motor vehicle taxes in these categories would result in an increase of revenue of Rs 40 crore during year 2014-15.

With regard to the LPG prices for domestic use in the state, Patel said that due to interpretation of the relevant provisions of the Central Sales Tax in the judicial system relating to interstate sales of LPG, the tax revenues of the state are adversely affected. He proposed to amendment in the relevant notification of the Gujarat Value Added Tax Act, 2003, to obviate such losses.

Patel however, assured the house that a separate mechanism will be put in place with the gas companies so that there is no increase in price of LPG for domestic use in the state.

Patel also proposed to reduce tax credit to the extent of 1 per cent instead of 2 per cent on purchase of goods made from within the state and used in inter-state sales with effect from October 2014. However, these will not be applicable on petroleum products and natural gas.

He further proposed to delegate powers to local bodies to collect and retain the entertainment tax on cable TV . Necessary amendments in the Gujarat Entertainment Tax Act, 1977 will be presented in the House during current session.