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The Maharashtra government’s Budget for 2015-16 proposes new taxes worth Rs 643 crore.
There were no changes in stamp duty in this first Budget of the current government, elected to power last year.
Home and commercial property purchases in this city are expected to become dearer, as Finance Minister Sudhir Mungantiwar plans to allow additional Floor Space Index (FSI, ratio of total permissible built-up area to the size of a land lot) with a premium. The government has proposed to enhance the FSI limit to 0.60 from the present 0.33 and to raise the rate of premium in the Brihanmumbai Municipal Corporation (BMC) limit.
It also proposed to raise the rate of premium on grant of all additional FSI in municipal corporation and municipal council limits. The current premium charged by BMC is Rs 1,500 a sq ft, expected to increase to Rs 3,000-9,000 a sq ft in various parts of Greater Mumbai. Realty companies are expected to pass on their burden to buyers.
Chief Minister Devendra Fadnavis said the government is expected to mop up non-tax revenue worth Rs 5,000 crore in 2015-16 via the recovery of premium on additional FSI.
Excise duty on country liquor has been revised to 200 per cent of manufacturing cost or Rs 120 per proof litre, whichever is higher. No professional tax will apply for women drawing a salary of up to Rs 10,000 a month, from the present Rs 5,000 a month. This should benefit nearly 150,000 employed women.
There were no changes in stamp duty in this first Budget of the current government, elected to power last year.
Home and commercial property purchases in this city are expected to become dearer, as Finance Minister Sudhir Mungantiwar plans to allow additional Floor Space Index (FSI, ratio of total permissible built-up area to the size of a land lot) with a premium. The government has proposed to enhance the FSI limit to 0.60 from the present 0.33 and to raise the rate of premium in the Brihanmumbai Municipal Corporation (BMC) limit.
It also proposed to raise the rate of premium on grant of all additional FSI in municipal corporation and municipal council limits. The current premium charged by BMC is Rs 1,500 a sq ft, expected to increase to Rs 3,000-9,000 a sq ft in various parts of Greater Mumbai. Realty companies are expected to pass on their burden to buyers.
Chief Minister Devendra Fadnavis said the government is expected to mop up non-tax revenue worth Rs 5,000 crore in 2015-16 via the recovery of premium on additional FSI.
Excise duty on country liquor has been revised to 200 per cent of manufacturing cost or Rs 120 per proof litre, whichever is higher. No professional tax will apply for women drawing a salary of up to Rs 10,000 a month, from the present Rs 5,000 a month. This should benefit nearly 150,000 employed women.
Tax exemption granted earlier on various essential commodities up to end-March 2015 is to be extended for another year. White and desi butter will be charged at four per cent. A five per cent entry tax has been imposed on import of long-steel into the state and a rise from the present five per cent to 12.5 per cent on plain and pre-laminated particle boards.
Mungantiwar has estimated a revenue deficit of Rs 3,757 crore for 2015-16 (on Rs 2.01 lakh crore of revenue expenditure) against Rs 13,883 crore for 2014-15 (revised estimate). The revenue deficit for 2014-15 was estimated last year at Rs 4,103 crore; it surged due to industrial power subsidy and relief to drought-hit farmers.
Mungantiwar said the revenue deficit would be controlled by reducing wasteful expenditure and better revenue recovery. The government has also said there are limited options to raise tax. The state debt is Rs 3 lakh crore and the annual interest burden is Rs 24,000 crore. Mungatiwar said the plan size had been increased to Rs 54,999 crore for 2015-16 from Rs 51,023 crore in 2014-15.
He proposed to put in place evidence-based photography to monitor the expenses incurred on various schemes and projects. A control centre for this will be established at the headquarters.
The government has proposed allocation of Rs 9,727 crore for subsidies — Rs 4,265 crore for power, Rs 1,612 crore for the state transport undertaking, Rs 3,000 crore for incentives to industries and Rs 850 crore on various fees and charges.
On BJP's poll promise to abolish the local body tax (LBT), Mungantiwar announced it will made effective from August 1 this year instead of originally proposed from April 1 this year.
This is necessitated as a compensation of Rs 6,875 crore was required after LBT is abolished in 25 municipal corporations excluding BMC. This loss, the government proposes, to compensate by enhancing rate of tax under VAT.
This is necessitated as a compensation of Rs 6,875 crore was required after LBT is abolished in 25 municipal corporations excluding BMC. This loss, the government proposes, to compensate by enhancing rate of tax under VAT.
''The enhanced rate of tax will be applicable to the whole state.A revenue neutral rate has been recommended considering the share of increased tax collection to be given to the areas where LBT is not levied. A decision in this regard will be taken after due consultations and thereafter LBT will be abolished from August 1.''
As far as Mumbai is concerned, BMC gets substantial revenue by levying Octroi duty on crude oil. The amount collected by oil companies as part of state specific duty from all consumers in the state. This aspect will also be taken into account, the minister said.
| AT A GLANCE |
Source: Maharashtra finance department |
