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Trade bodies in Rajasthan seek budgetary, tax reforms to boost development

"This force should also be responsible for budgetary reforms of the state government," said Kailash Sharma, senior vice-president of ARTIA

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ARTIA has suggested in its report that the state should also study whether there is a practical need for many departments in the state government or not. Representative Picture

Anil Sharma Jaipur

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State chambers of commerce and trade bodies have requested the Bhajan Lal Sharma-led BJP government to undertake budgetary and tax reforms to accelerate the development of the state.

The All Rajasthan Trade and Industry Association (ARTIA) and deputy chief minister Diya Kumari, who also holds the finance portfolio, had earlier discussed the forming of an economic revival task force.

“This force should also be responsible for budgetary reforms of the state government,” said Kailash Sharma, senior vice-president of ARTIA.

Echoing similar views, Kamal Kandoi, a prominent trader based in Jaipur, said the state government should first focus on tax reforms. He believed that four taxes — land revenue tax, tax on vehicles, electricity duty and property tax — should be abolished.

 

Sharma said that land revenue tax is collected from farmers, and is estimated to generate over Rs 720 crore in revenue.

When the government is spending Rs 90,000 crore on agriculture and Rs 1,400 crore on Kisan Samman Nidhi, then this burden of land revenue tax should be removed for the farmers.

“Electricity duty has no relevance from a practical point of view. The common man can get relief of around Rs 3,500 crore from this,” Kandoi added.

ARTIA has suggested in its report that the state should also study whether there is a practical need for many departments in the state government or not.

Giving an example, Sharma said there is a labour department, whose budget is over Rs 1,930 crore. This department has three components — construction worker assistance with a budget of over Rs 720 crore, the employment directorate whose budget is around Rs 885 crore and the third is craftsman training.

Sharma suggested that the responsibility of construction worker assistance can be handed over to local bodies and panchayat committees. And, the employment directorate can be brought under the higher education department.

The craftsman training budget is over Rs 260 crore, and this work can be done through the art and culture department. It will help in saving a lot of costs, he added.

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First Published: Jun 17 2024 | 6:12 PM IST

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