GUWAHATI, July 11 � Chief Minister Tarun Gogoi, who also holds the Finance portfolio, today presented a Rs 1542.71-crore deficit Budget for the State for the year 2011-12 in the State Assembly. He also reduced tax on LPG cylinder and increased tax on tobacco products and liquor.
According to the Budget estimates announced by the Chief Minister, total receipts of the State for the year would be Rs 134165.57 crore against expenditure of Rs 131203.02 crore, leaving a surplus of Rs 2962 crore. But with an opening deficit of Rs 4505.26 crore, the year would end with a deficit of Rs 1542.71 crore.
The estimated inflows into the consolidated fund of the State for the year include sales tax amount of Rs 6566 crore, non-tax revenue amounting to Rs 3326 crore, State plan grants Rs 6526 crore, share of Central taxes amounting to Rs 9573 crore, non-plan grants from the Centre amounting to Rs 2648 crore, Rs 4092 crore as grants from the Centre, Rs 129 crore as loan from the Centre, Rs 3996 crore as internal debt and Rs 36 crore as recoveries of loans.
The Chief Minister has proposed to give tax exemption of Rs 14 per LPG cylinder for domestic consumers to give relief to the people following a hike in the price of LPG by the Government of India. He proposed to raise the VAT rate of tobacco products from 13.5 percent to 20 percent to discourage consumption of tobacco products. Similarly, in order to discourage consumption of alcohol, he proposed to increase the VAT rate on foreign liquor and country spirit from 27 percent to 30 percent.
In order to offset the impact of increase in cess on green leaf on tea exported, the Chief Minister proposed to increase deduction from Rs 5 to Rs 6 for every kilogram of tea exported through the Inland container depot, Amingaon from agricultural income for computation of agricultural income tax with effect from April 1 last.
At present, dealers with annual taxable income up to Rs 20 lakh have to file VAT returns quarterly and dealers with turnover of over Rs 20 lakh have to file VAT returns monthly. The Chief Minister today proposed to enhance the limit of Rs 20 lakh to Rs 40 lakh in order to lessen the burden on small business from official paper works.
The Chief Minister further proposed to increase the rate of taxes on declared goods like bitumen, PSF and DMT, tea, bamboo, furnace oil, etc., from 4 percent to 5 percent and said that this would bring additional revenue of Rs 20 crore per year.
In his Budget speech, Gogoi said that Motor Vehicle tax amounting to Rs 245 crore was collected in the last financial year and this year the collection target has been enhanced to Rs 281 crore. The collection of MV tax is likely to increase by 15 percent per annum in the coming years. Excise revenue collection is estimated to go up to Rs 400 crore in the current financial year and the Government is planning to earn Rs 145 crore from stamps and registration.
The Chief Minister claimed that the State made unprecedented progress in the last 10 years and most of the insurgent groups have come forward to solve their problems through negotiations. He said that in his third term as the Chief Minister, he would give highest priority to improve the overall environment for investment and rapid economic development.