Power, cigarette bills to go up
- Babri Masjid demolition case: SC issues notices to Advani, other BJP leaders over conspiracy charges
- Seven years ago, everyone saw Delhi’s air take a deadly U-turn but no one did a thing
- LIVE: 16 dead as floods ravage parts of Jammu and Kashmir
- Take this, Congress: NDA plans a memorial for Narasimha Rao
- Punjab panel books Muslims, Christians with ‘fake’ SC papers
2013-14 Professional tax exemption for 'neo-middle class', 1% tax on used vehicle sales.
The state government has targeted to earn Rs 32 crore by raising the rate of tax on cigarettes to 30% from the current 25% in the state Budget 2013-14. Sale of used two-wheelers and medium and heavy duty commercial vehicles have been made taxable at the rate of 1%. The government aims to earn an additional Rs 2 crore from this new levy.
The budget also proposes to increase electricity duty by 15 paise per unit. This will be applicable to those consuming self-generated electricity. The government plans to earn Rs 255 crore from this fresh levy.
To the neo-middle class, the government has proposed full exemption of professional tax to those earning up to Rs 6,000 per month.
The state, meanwhile, stands to lose Rs 88 crore in VAT revenue after it raised the turnover limit to Rs 75 lakh from Rs 50 lakh. This will benefit 23,000 dealers who were earlier paying lump sum tax.
Full exemption has also been given to micro-irrigation system equipment from current 5% rate of tax. This has been done to encourage use of such water efficient system in agriculture. The government stands to lose Rs 10 crore from this exemption.
The government has also proposed full exemption for pencils, foot-rules, slide rules, mathematical instruments and its box, school colour box, rubber erasers and pencil sharpeners from current rate of 5% tax, as well as for agarbatti dust and "newar" made of plastic.
In order to encourage use of carbon credit, the government has made it taxable at 5% from the present rate of 15%. The state stands to lose Rs 132 crore from this reduction.