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Gold jewellery to cost more; certain VAT rates raised in Karnataka

Thursday, 24 February 2011 - 7:24pm IST | Place: Bangalore | Agency: PIB
The Karnataka government today raised additional excise duty to 20% and VAT to 14% in the general budget for 2011-12 and unveiled a first of the kind separate agriculture budget.

The Karnataka government today raised additional excise duty to 20% and VAT to 14% in the general budget for 2011-12 and unveiled a first of the kind separate agriculture budget.
    
A hike in excise and VAT would make goods like fridges, television sets and cement costlier, as also jewellery and articles of gold and other noble metals such as gold and platinum and precious and semi-precious stones.
    
On other hand, in his unique agriculture budget, chief minister BS Yeddyurappa, who also holds finance portfolio, proposed crop loans at 1% and earmarked Rs17,857 crore for agriculture and allied sectors.
    
Total receipts are expected to be Rs83,729 crore -- Rs66,313 crore of revenue receipts and Rs17,416 crore of capital receipts.
    
Total expenditure is estimated to be Rs85,319 crore (revenue expenditure of Rs65,034 crore and capital expenditure of Rs20,285 crore).
    
As part of the Additional Resource Mobilisation, the government proposed to increase additional excise duty by 10% to 20% across all 17 slabs and on Urban Transport Fund from 10% to 11%, besides increasing composition amount payable in respect of totalisator tax by Bangalore Turf Club from 4% to 8%.
    
It also proposed changes in VAT from 13.5% to 14% on various goods and on jewellery from 1% to 2%.
    
In his post-budget media briefing, Yeddyurappa said additional revenue of Rs500 crore would be raised from Commercial Tax, Rs300 crore from stamps and registration, Rs200 crore from excise and Rs20 crore in motor vehicle taxes.
    
Basking in the glory of being the first chief minister in the country to present an exclusive agriculture budget, he said, "I took oath in the name of farmeRsand had nurtured a dream of giving them a separate budget. That dream has now
been realised unhindered."
    
"I hope the prime minister and union finance minister will emulate it by presenting an agriculture budget on the lines of the Railway budget", Yeddyurappa said.
    
He said the rate of interest on crop loans of up to Rs3 lakh from cooperative institutions would be reduced from 3% to 1%.
    
The agriculture budget seeks to boost productivity and improve living conditions of farmers, he said, noting that he had stepped up allocation from Rs11,000 crore in 2010-11 to Rs17,857 crore in 2011-12.
    
But opposition Congress leader Siddaramaiah and KPCC President G Parameshwara dubbed the agriculture budget a "gimmick" and the General budget an "election budget".     

Yeddyurappa commended the budget proposals which projected Rs1,279 crore revenue surplus and sought a vote-on-account till July 31.


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