SHILLONG, March 26 � Meghalaya Finance Minister Mukul Sangma presented a deficit Budget of Rs 376 crore, levying additional taxes on 142 consumer items, during the current fiscal in the State Assembly today.
With this additional tax burden, TVs, LCD panels, computers, software and other electronic items would now become dearer with a proposed increase on Value Added Tax (VAT) from the current 4 per cent to 5 per cent.
Moreover, rolled and imitation gold, cotton goods, areca nut, powder, betel nuts and other items listed under Scheduled II of Meghalaya VAT Act, 2003 would become costlier.
On the card, is an increase in tax on power and luxury hotel room tariff, Sangma indicated. �The Taxation department is planning to amend the Meghalaya Electricity Duty Act and the Meghalaya Tax on Luxury hotels and lodges, Act 1991, which has become outdated,� the Finance Minister added.
The government also proposed to introduce holograms for sale of liquor. The government expects additional revenue of Rs 10 crore annually by undertaking this step, Sangma said.
The government, however, reduced VAT on cashew nut from the current 12.5 per cent to 4 per cent. �This will encourage setting up of more processing units within the State,� he added.
Moreover, Sangma announced that there would be no increase in tax on items of common consumption such as rice, wheat and potato, so that the weaker sections of the society are not affected.
On revenue generated from VAT, he added, the State has collected Rs 213.13 crore during this fiscal till January 2010.
Sangma said the total receipt for 2010-11 is estimated at Rs 4,895 crore � a jump of 16 per cent from 2009-10. He further informed the House that the deficit for the current fiscal stands reduced due to �favourable award from the 13th Finance Commission� from last fiscal�s Rs 614 crore deficit. �Almost half of the revenue receipts are being contributed from plan grants which are Rs 2,293 crore,� he said.
Moreover, increase in coal royalty, stringent measures on export revenue collection from forest, limestone and other products have also boosted the State exchequer, Sangma added.
