Maharashtra Budget 2013-14: Sugarcane purchase tax up at 5%
The budget proposes hike in taxes on cigarettes, liquor, tobacco, cosmetics & jewellery to raise funds
The minister also made a provision to hike the value added tax (VAT) on gold, silver and jewellery made from these metals from 1% to 1.1%. The hike in tax will be limited only for one year. He has proposed to hike tax on sugarcane purchase from 3% to 5% to raise fund for drought relief.
Mr Pawar has proposed to change the structure of state excise duty on country liquor, IMFL (Indian made foreign liquor) and strong beer. The minimum rate of excise duty on country liquor has been raised from Rs. 95 to Rs. 110 per proof litre (PPL), while on IMFL it has been increased from Rs. 240 to Rs. 300 PPL.
Excise duty on strong beer has been hiked from Rs. 42 per bulk litre or 175% of manufacturing cost whichever is higher, to Rs. 60 per bulk litre or 200% of the manufacturing cost whichever is higher. Tax on ingredients for making non-alcoholic beverages will be increased to 12.5% from 5%.
Increase in export fee on IMFL having maximum retail price less than Rs. 500 to Rs. 3 per bulk litre from Re. 1 per bulk litre. Export fee on IMFL having maximum retail price of Rs. 500 or more is Rs. 5 per bulk litre. It will now be increased to Rs. 10 per bulk litre.
Since taxes on lottery had not been increased in the last few years, Mr Pawar said weekly lottery will now be taxed Rs. 60,000, fortnightly lottery scheme or any lottery scheme between a week and a fortnight Rs. 1.25 lakh, and monthly lottery or which exceeds fortnight Rs. 2.5 lakh and bumper lottery Rs 12 lakh.
Cosmetics and shampoo will be taxed at 12.5% while certain products in the category that are sold for medicinal value would attract 5% tax.
A tax of 5% will be levied on textiles for industrial use. Earlier furnishing cloth was taxed 5% at the last point of sale, but the budget has, instead of levying tax on all types of textiles, proposed to levy 5% tax on textiles for industrial use.
Tax exemption on essential commodities, Solapuri chadars and towels and wet dates will continue till March 31, 2014. Concessional tax rates on tea will also be extended till the end of the next fiscal, while rice bran will be exempt from tax. Sale of water meters to local bodies will also be exempted from tax.
Financial institutions would be liable to pay stamp duty on mortgage deeds. Also rounding off fractions in stamp duty will be payable. If agreement to sale is registered by paying proper stamp duty by treating as deemed conveyance deed will be charged with Rs. 100 stamp duty.
Mr Pawar informed the Legislative Assembly that the state’s Gross Domestic Product (SGDP) was expected to increase by 7.1% during 2012-13. Per capita income of the state for year 2011-12 was Rs. 95,339. During FY13-14, revenue receipts are expected to be Rs. 1.55,986.95 crore and revenue expenditure Rs 1,55,802.57 crore, leaving an estimated surplus of Rs184.38 crore.
Mr Pawar has made provisions for irrigation. Out of the provisions of Rs.46,938 crore, Rs.20,918 crore has been proposed to reserve for the social schemes and Rs.11,000 crore for the water management.
The government, Pawar said, has made available Rs. 850 crore for undertaking temporary relief measures to tackle the current water scarcity. As much as Rs. 1,050 crore from national calamity response fund will also be provided, he said. A sum of Rs. 186 crore has been earmarked for supply for fodder. A provision of Rs. 346.75 crore has been made for making available agriculture loan at subsidised rate. Another Rs. 53.50 crore will be given to keep buffer stock of fertilisers, Rs. 751.04 crore for various agriculture development programmes and Rs. 787.39 crore for Mahatma Gandhi National Rural Employment Guarantee Scheme. Almost Rs.7,249 crore will be made available to complete 140 irrigation projects with an irrigation potential of 2 lakh hectatres and storage capacity of 1,100 million cubic metre.
For industrial promotion, subsidies totalling Rs. 2,500 crore have been budgeted for. Over Rs. 939 crore has been allocated for electricity subsidy for powerlooms, while Rs. 123.11 crore would be provided for allied and basic infrastructure for promotion of industry.
Rajiv Gandhi Jeevandayi Yojana, aimed at providing below poverty line (BPL) and above poverty line (APL) families access to medical facilities will be extended to the entire state, Mr Pawar said, adding Rs. 325 crore has been earmarked for the scheme. A sum of Rs. 477.98 crore would be spent on construction of health institutes.
The Budget has also proposed to allocate Rs 317.17 crore for modernisation of the police force. An additional Rs. 149.78 crore would be spent on installation of CCTV surveillance. A total of Rs. 1,264.76 crore has been earmarked for nutritional programme for children in the age group of 0-6 years, pregnant women and lactating mothers.
A sum of Rs 285 crore is proposed to be spent on infrastructure development in tourism sector including the oceanarium 'Sea World' in the Konkan region.
Highlights of the Maharashtra Budget
Provision for providing agriculture loan at subsidised rate-Rs.346.75 crore
Agriculture development programmes-Rs.751.04 crore
Water sector improvement projects-Rs.400 crore
Provision for supply of water-Rs.850 crore
National calamity response fund-Rs.1,050 crore
Industrial promotion subsidy-Rs. 2,500 crore
Electricity subsidy for powerlooms-Rs. 939 crore
Construction of health institutes-Rs.477.98 crore
National Rural Health Mission-Rs.500 crore
Sarva Shiksha Abhiyan-Rs.711.50 crore
Road development-Rs. 2,716.67 crore
Women and child development-Rs.1,264.76 crore
Rural development and tourism-Rs. 650 crore
For modernisation of the police force-Rs. 317.17 crore
Maharashtra’s debt-Rs.2,70,000 crore
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