Drugs and medicines, dry fruits, IT products, stainless steel and processed fruits & vegetables are among 109 items, which will become costly in Himachal Pradesh with the state government on Friday announcing increasing value added tax (VAT) on them by one%.
Presenting annual Budget for 2010-11 in the Assembly, chief minister Prem Kumar Dhumal proposed VAT on items at 5% against 4% earlier. However, there will be no increase in the VAT rate on edible oils and foodgrains, he added. The Rs 15,078 crore Budget for 2010-11 presented in the state assembly leaves a huge fiscal deficit of 5.08.
There will be no increase in the VAT rate on edible oils and food grains.
The CM also proposed to levy entry tax on goods used by industries or hydroelectric projects, goods being imported for turn-key projects, pan-masala, tobacco, cigarettes etc. to boost revenue.
He said that due to prudent economic management, the projected growth rate for the current financial year is 7.5%.
The annual Plan for 2010-11 is proposed for Rs 3,000 crore, an increase by Rs 300 crore from last financial year.
Total expenditure estimate for 2010-11 is Rs 15,078.92 crore. In the field of education, a total of Rs 2,567 crore has been allocated in 2010-11, which is by far the highest ever annual budget allocation for this sector, Dhumal said.