Maharashtra Deputy Chief Minister and state Finance Minister Ajit Pawar on Wednesday presented a Rs. 58-crore surplus budget, raising taxes on soft drinks and liquor, among others, while exempting foodgrain and essential commodities.While Pawar levied a uniform 0.005 per cent stamp duty rate on all sale and purchase transactions in the share market, duty on tenancy right transfer at market rate, increase in tax rate of declared goods to five per cent from four per cent, increase in tax rate on soft drinks, goggles and liquor.
The tax proposals are expected to mobilise an additional revenue of Rs. 1,000 crore (Rs. 10 billion).
The Minister explained that a revenue surplus budget was possible due to a record sales tax and VAT collection of almost Rs. 42,000 crore (Rs. 420 billion), against the target of Rs. 35,000 crore (Rs. 350 billion), a rise of 26 per cent.
Considering the trend of revenue collection, the revised estimates of revenue receipts have been fixed at Rs. 1,07,159 crore (Rs. 1,071.59 billion).
Revenue expenditure at the beginning of the year was expected to be Rs. 1,04,698 crore.
In the revised estimates it has been fixed at Rs 1,12,846 crore. As a result the revenue deficit, which was expected at Rs 7,654 crore, has come down to Rs 5,688 crore.
However, there would be a marginal surplus of Rs. 58 crore (Rs. 580 million) as revenue receipts are expected to touch Rs. 1,21,503 crore (Rs. 1,215.03) against revenue expenditure of Rs. 1,21,445 crore (Rs. 1,214.45 billion) in 2011-12.
The annual plan size has been fixed at Rs. 41,500 crore (Rs. 415 billion).
The minister has also proposed a five per cent tax on telecasting rights for cricket matches.
The telecasting rights of various entertainment and sports events will be included in the list of goods of intangible nature.
The general tax rate on sale of electricity generation, transmission and distribution units, telecom industry, defence and railways has increased to five per cent from four per cent.
Pawar said transactions in transfer of long held tenancy rights of house properties at prime locations in Mumbai, especially South Mumbai, take place on a large scale.
These are transacted at market value but the same is not reflected in the accompanying documents.
Therefore, the minister has proposed that these transactions will now be liable for stamp duty at their market value.
"These two put together would mobilise nearly Rs. 300 crore (Rs. 3 billion)," he said.
He said the list of declared goods, which would now attract five per cent tax instead of four per cent, include coal, cotton, cotton spindles, aviation turbine fuel, iron, steel, jute, raw oil and oil seeds.
This was necessitated as Finance Minister Pranab Mukherjee in the Budget had increased the limit for taxing of declared goods covered under the central salex tax to five per cent.
The effective date of the new rate will soon be notified.
