No new taxes in Rs 2,134 cr Delhi deficit Budget for 2003-04
Delhi Finance Minister Mahinder Singh Saathi today presented an election Budget, postponing the implementation of the value-added tax (VAT) beyond April 1.
He also reduced the entertainment tax on cinema halls by half and the stamp duty on immovable properties to 5 per cent from 8 per cent. His Budget for 2003-04 announced no new taxes.
However, non-commercial vehicles priced above Rs 4 lakh will be costlier following the implementation of an ad valorem road tax structure announced today. Saathi proposed a two-slab ad valorem basis for calculating road tax on private non-commercial vehicles under which a 2 per cent tax would be levied on vehicles costing up to Rs 4 lakh and a 4 per cent tax on vehicles costing more.
The current one-time road tax is collected on the basis of the laden weight of a vehicle, and does not distinguish costlier vehicles from cheaper ones. The rationalisation of tax rates is expected to accrue an additional Rs 80 crore to the state exchequer.
Saathi also said the entry tax on motor vehicles would be removed. He raised the taxable turnover limit for traders to Rs 5 lakh from Rs 4 lakh and for manufacturers to Rs 5 lakh from Rs 2 lakh. The annual turnover bracket for the summary assessment of car dealers has been raised from Rs 1 crore to Rs 2 crore.
Saathi said sales tax refunds would be streamlined by the electronic clearing system.
The finance minister has proposed removing the 4 per cent sales tax on foodgrains sold in packs of less than 20 kg. He has lowered the tax on non-electronic toys from 8 per cent to 4 per cent. Non-electronic toys with maximum retail price of up to Rs 100 are completely exempt.
However, sweet-meats will be dearer with the sales tax hiked to 8 per cent from 4 per cent.
Saathi said the state was trying to make the provisions of VAT acceptable. Reiterating that Delhi would shift to the new regime soon, he ruled out implementing VAT from April 1.
