 "Maharashtra FM proposes tax on two- and three-wheelers")
Maharashtra Finance Minister Sudhir Mungantiwar on Friday proposed a tax on two- and three-wheelers for personal use while tabling the state’s Budget for 2016-17 with an estimated revenue deficit of Rs 3,644 crore.
At present, such vehicles are taxed at seven per cent. The minister proposed an eight per cent tax for vehicles up to 99 cc, nine per cent for 100-299 cc and 10 per cent for 300 cc and above. However, he proposed that the tax on vehicles in the name of companies, undertakings and on imported vehicles be levied at twice the respective rates.
Presenting the second Budget of the BJP-led government at a time when the state is reeling from a severe drought, Mungantiwar projected revenue mobilisation of Rs 2,20,810 crore against revenue expenditure of Rs 2,24,454 crore.
Mungantiwar said the revenue deficit, which was estimated at Rs 3,757 crore by the end of 2015-16, had been revised to Rs 9,209 crore largely due to expenses incurred on drought relief in over 15,000 villages. He has proposed an allocation of Rs 25,000 crore for the farm sector after output declined 2.7 per cent against a target of six per cent growth.
For the irrigation sector, the minister proposed an allocation of Rs 7,850 crore against Rs 7,272 crore in 2015-16.
To make up for the revenue deficit, he pushed for new tax proposals of Rs 301 crore but he waived the sugarcane purchase tax of Rs 710 crore. The minister refrained from imposing tax on e-commerce on the lines of competing states and thereby indicated that the government was serious to promote the Digital India initiative.
He also proposed an amnesty scheme under the Industrial Policy 2013 for closed and un-revivable units.
He announced an amnesty scheme for professional tax enrollment holders with a provision that tax liability and penalty be restricted to the previous three years.
Further, according to a sales tax amnesty scheme, the interest and penalty for dues up to March 31, 2005, subject to full tax payment will be waived and for disputed dues from April 1, 2005, and March 31, 2012, subject to full payment and 25 per cent interest payment under the VAT Act, the balance dues will be waived.
Mungantiwar proposed exemption of VAT on warping and sizing of yarn for promoting the textile industry, increase in the turnover limit for composition to retailers under the Maharashtra VAT Act to Rs 1 crore from Rs 50 lakh, exemption of VAT on mammography machines used for detection of breast cancer, reduction in VAT on sterile water for injections to 5.5 per cent from 12.5 per cent and exemption of VAT on retrofit kits for vehicles for the physically handicapped.
At present, such vehicles are taxed at seven per cent. The minister proposed an eight per cent tax for vehicles up to 99 cc, nine per cent for 100-299 cc and 10 per cent for 300 cc and above. However, he proposed that the tax on vehicles in the name of companies, undertakings and on imported vehicles be levied at twice the respective rates.
Presenting the second Budget of the BJP-led government at a time when the state is reeling from a severe drought, Mungantiwar projected revenue mobilisation of Rs 2,20,810 crore against revenue expenditure of Rs 2,24,454 crore.
| BUDGET HIGHLIGHTS |
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Mungantiwar said the revenue deficit, which was estimated at Rs 3,757 crore by the end of 2015-16, had been revised to Rs 9,209 crore largely due to expenses incurred on drought relief in over 15,000 villages. He has proposed an allocation of Rs 25,000 crore for the farm sector after output declined 2.7 per cent against a target of six per cent growth.
For the irrigation sector, the minister proposed an allocation of Rs 7,850 crore against Rs 7,272 crore in 2015-16.
To make up for the revenue deficit, he pushed for new tax proposals of Rs 301 crore but he waived the sugarcane purchase tax of Rs 710 crore. The minister refrained from imposing tax on e-commerce on the lines of competing states and thereby indicated that the government was serious to promote the Digital India initiative.
He also proposed an amnesty scheme under the Industrial Policy 2013 for closed and un-revivable units.
He announced an amnesty scheme for professional tax enrollment holders with a provision that tax liability and penalty be restricted to the previous three years.
Further, according to a sales tax amnesty scheme, the interest and penalty for dues up to March 31, 2005, subject to full tax payment will be waived and for disputed dues from April 1, 2005, and March 31, 2012, subject to full payment and 25 per cent interest payment under the VAT Act, the balance dues will be waived.
Mungantiwar proposed exemption of VAT on warping and sizing of yarn for promoting the textile industry, increase in the turnover limit for composition to retailers under the Maharashtra VAT Act to Rs 1 crore from Rs 50 lakh, exemption of VAT on mammography machines used for detection of breast cancer, reduction in VAT on sterile water for injections to 5.5 per cent from 12.5 per cent and exemption of VAT on retrofit kits for vehicles for the physically handicapped.