LPG, vehicles, dry fruits to cost more in Maharashtra

Beedis, dry fruits, LPG for domestic use, diesel cars and jeeps are set to become costlier in Maharashtra with the budget for 2012-13 proposing increased levies on these products.

The 152.49 crore revenue surplus budget, tabled in the state assembly on Monday by Deputy Chief Minister Ajit Pawar, who also holds the finance portfolio, envisages mopping up additional revenue of Rs 600 crore through these measures.

The budget proposed a hike of one per cent on Aviation Turbine Fuel (ATF) in places other than Mumbai and 12.5 per cent tax on sale of beedis.

"Tobacco and its products are taxed at 20 per cent in the state. Beedi and unmanufactured tobacco were so far excluded from levy of tax. Beedi is also equally injurious to health. It is taxed in many states," Pawar said.

A 5% tax has been proposed on sale of LPG for domestic use.

"LPG for domestic use was exempted in 2008. This concession was continued last year also. It (LPG) is taxable in many states. Kerosene used for domestic purpose is already being taxed in the state," Pawar said.

The budget proposes raising tax on ATF in places other than Mumbai and Pune to 5 per cent, up from 4 per cent from April 1.

While tax on diesel cars and jeeps has been raised by 4 per cent, it has been increased by 2 per cent on petrol cars and jeeps.

However, the budget gives concession for CNG vehicles. "I propose to reduce tax by 2 per cent for each of the slabs on purchase of a new motor vehicle fitted with CNG kit by the manufacturer. The new tax rate will be 5 per cent for vehicles costing up to Rs 10 lakh, 6 per cent for vehicles costing between Rs 10 to 20 lakh and 7 per cent for vehicles costing above Rs 20 lakh," he said.

Tax exemption on essential goods like rice, wheat, pulses and their flour, turmeric, chillies, tamarind, gur, coconut, coriander seeds, fenugreek, parsley, papad, wet dates, solapuri chaddars and towels would continue till March 31, 2013, the minister said.

The minister also announced an amnesty scheme for outstanding electricity duty. "Under this scheme, if the outstanding electricity dues as on December 31, 2011 is paid in one instalment, it is proposed to waive 50 per cent of interest accrued thereon, subject to withdrawal of pending court cases," he said. The scheme would come into effect from April 1, 2012 to June 30, 2012.

A single tax rate of 5% has been proposed for dry fruits.

Aiming to help farmers, the budget has proposed Rs 415 crore for Rashtriya Krushi Vikas Yojana. Rs 2,500 crore have been allocated to provide concession in electricity bills to the farmers, Pawar said.

The budget also sets a target of energising 1.5 lakh agricultural pumps. An amount of Rs 65.56 crore has been set aside for the proposed World Bank-assisted Maharashtra Agricultural Competitiveness Project.

Mahanirmiti, the power generation company of Maharashtra Government, has planned 11,015 MW power generation in the year 2012-13 from gas, solar and coal based projects for which an outlay of Rs 1500 crore has been proposed in the budget.

The budget envisages revenue receipts of Rs 136711.70 crore during the year and an expected expenditure of Rs 136559.21 crore.

The state's plan expenditure has been fixed at Rs 45,000 crore, Pawar said, adding the special component plan for scheduled castes has been pegged at Rs 4590 crore, tribal sub-plan at Rs 4000 crore and district plan (general) Rs 4950 crore, an increase of Rs 630 crore over the last year.

The gross state domestic product is expected to rise by 8.5%, Pawar said, adding the Net state domestic product is estimated at Rs 9,82,452 crore.

The budget provides for Rs 100 crore towards centenary celebrations of Maharashtra’s first chief minister Y B Chavan.

Besides providing for construction of a Marathi Bhasha Bhavan in Mumbai for promoting the language, he said rare Marathi books would be brought online through e-books and volumes of the Vishwakosh (encyclopedia) would be made available on the internet.

Water transport services project on the west and east coast of Mumbai will be a reality by June 2014, Pawar said.

Infrastructure development under Nariman Point-Borivali west coast water transport project will be undertaken jointly by the state government, Mumbai Metropolitan Region Development Authority (MMRDA) and City and Industrial development Corporation (CIDCO) at an estimated cost of Rs 750 crore, he said.

The government also plans to organise film festivals of Marathi and Hindi movies which have won awards from the government to mark the centenary year of Indian cinema, Pawar said. To mark the centenary year of Indian cinema, necessary funds would be made available to undertake various activities in six revenue divisions of the state where the film festivals will be organised.