CM Vasundhara Raje-led Bharatiya Janata Party (BJP) government in Rajasthan presented the Budget today and caused mobile phones, two-wheelers and taxi services to cost more.
On the other hand coffee, marble cutting tools and radio sets will be cheaper as the Budget 2015-16 hiked VAT on certain items and removed entry tax on 14 other items.
While presenting the Budget today, Chief Minister Vasundhara Raje announced removing entry tax on 14 items, including tin plate, coffee, cocoa, handpumps, AC pressure pipes, salt, gun powder, wireless reception instruments, marble cutting tool, diamond bits and radio sets.
However, she increased stamp duty, raised VAT on mobile phones and other items and levied one-time tax on two-wheelers, cabs in the Budget presented in the Assembly.
The new tax proposals, which will make mobile phones dearer among other items, will earn additional income of Rs 500 crore to the exchequer.
Raje, who also holds finance portfolio, projected an estimated Revenue Surplus of Rs 556.82 crore for 2015-16.
Saying that the state would be ready to implement Goods and Service Tax (GST) in April 2016, Raje said her budget aimed for sustainable, inclusive growth with priority sector identification for Rajasthan’s economic progress and prosperity.
“Our plan is to link every village with a road, people should get 24×7 power supply and portable water,” Raje said.
Raje proposed a plan outlay of Rs 71,405.78 crore in the budget estimate for 2015-16.
This includes Gross Budgetary Support of Rs 57,322.77 crore, Internal and Extra-Budgetary Resources of Rs 13,147.59 crore and Resources of Participating Agencies for Public Private Partnership Projects of Rs 935.42 crore, she said.
Whereas the estimated fiscal deficit would be Rs 20,609.75 crore which is 2.99 per cent of GSDP, Raje said.
Among new tax proposals, VAT on mobile phones and its accessories has been increased from 5 per cent to 8 per cent, while on certain items the same has been increased from 14 per cent to 14.5 per cent.
Stamp duty on adoption of deeds, affidavits, certain categories of power of attorney and release deed executed has also been increased.
Raje also proposed one-time tax for two-wheelers up to 125cc, whereas light good vehicles, motor cabs, maxi cabs registered since April 1, 2007, would also pay “one-time lump sum tax” with the facilitation to pay the tax in six installment in a year.
On state’s share in central taxes, Raje said the Centre had proposed to pay Rs 22,432 crore to Rajasthan in 2014-15 but due to amendments there was shortage to the tune of Rs 2615 crore in receiving the state’s share.
On one side where Rajasthan would face revenue loss due to decline in crude oil and petroleum products, and on the other hand the share from centre taxes would further cause estimated loss of Rs 4,219.61 crore in the current fiscal, she said.
To improve the living standard of people, the state GDP should get a rise so that per capital income of person be increased, Raje said.
“On the pattern of Make in India, we want Make in Rajasthan through special image of industry and business”, she said, adding for this the state government was committed with a new plan of “ease of doing business” in which a “dealer friendly IT system” would be evolved and tax collection procedure would be simplified with more facilitations.
Stressing e-governance measures, Raje in her 113-page budget speech that lasted for over 2 hours and 30 minutes announced measures for additional revenue mobilisation to earn Rs 500 crore.
Among new proposals, composition amount for Sarafa dealers (jewellers) has been increased from 0.25 per cent to 0.75 per cent while VAT on goods mentioned in schedule-V of RVAT has been increased from 14 per cent to 14.5 per cent.
Captive power plants other than DG sets will be levied ED of Rs 0.40 per units of Electricity Generated for self consumption.
All the marriage gardens brought under Luxury tax, Raje announced.
In transport sector, the ceiling of motor vehicle tax for passenger buses covered by a non-temporary permit enhanced, she said, adding purely off highway vehicles to pay “one time tax”.
While giving tax relief amounting to Rs 200 crore, she announced to remove Entry Tax on 14 items including tin plate, coffee, cocoa, handpumps, photographic film, AC pressure pipes, salt, gun powder, wireless reception instruments, marble cutting tool, gangsaw, diamond bits, Batasa, Mishree, Makhana, Sugar toys, Ice cream, pipe and pipe fittings, radio sets, vcp tape recorders, transistors.
The chief minister further proposed to reduce entry tax on 18 items in varied range in various fuels, sim cards, smart cards, fax machines, computer, telephone, TV, microwave, washing machine, tyres, tubes, aluminium structural, steel fabrication, generating sets, transformers, insulators, glass, photo copiers, bitumen, and lubricants.
Entry tax on these items which were at 14 or 15 per cent has been reduced to 4 per cent, and on some it was reduced from 5 to 4 per cent.
Raje proposed to exempt items such as Pooja Hawan Samagri, Patthar ki Chokhat, Jute rope, mosquito net, bird net, marble items, intra-ocular lens for cataract from VAT.
Pizza, burger, toilet paper, tissue paper, brushes excluding tooth brushes, soya milk, non-mechanised floor wipers and floor mops, life jackets, lift belts, radio, and cotton rope would be cheaper, she said.
Kota stone, Marble and Granite sector given a status of Thrust Sector under Rajasthan Investment Promotion Scheme, and a new unit going in for expansion would be provided reimbursement of 65 per cent to 95 per cent of VAT and CST paid. VAT on Kota stone has been reduced from 5 per cent to 2 per cent, she said.
She made major tax relief in registration and stamps covering housing, mortgage deed (loan agreement), and in tourism sector with special road tax rebate for the 30 plus seater AC tourist permit buses of recognised tour operators.
The royalty on marble powder under Rajasthan Minor Mineral Concessional Rules, 1986 has been exempted, she said.
For tax collection, the chief minister put forth e-governance measures specially mobile app, setting up of “Dealer Facilitation Centres” on PPP basis, and single return facility for all four taxes namely VAT, CST, Entry Tax and Luxury Tax by integrating them.
Raje in her budget speech said that the government will promote the state as an attractive tourism destination by efficiently using all means of communication and marketing.
She also announced plans to develop Jaipur as MICE (Meetings, Incentive, Conferences and Exhibitions) destination.
The tourism and art and culture sector got Rs 244.46 crore in the budget, which is 68 per cent higher as compared to the revised estimates for 2014-15.
She allocated Rs 38 crore for a campaign on tourism promotion, Rs 35 crore to development of tourist destinations, Rs 20 crore for development of various museums and panoramas.
Development of Mangarh Dham in Banswara, Havelis in Shekhawati region, restoration and preservation of famous 13th century village Kuldhara in Jaisalmer, renovation of Sonar fort of Jaisalmer, Panorama work of famous deity Pipaji and others were among other announcements.
She also announced development of a new tiger safari in Ranthambhore Tiger Reserve, new biological park in Bikaner, herbal garden at Jaipur-Pushkar bypass and Srimit Van in Nolakhha, Jhalawar.