Assam Budget: Sanitary wares, cigarettes get costlier

Guwahati: Assam Chief Minister Tarun Gogoi today presented in the state assembly Rs 1,352.57-crore deficit Budget for 2013-14, which makes tobacco products, pre-owned commercial vehciles, marbles and granite sanitary wares and bathroom fittings costlier.

Electrical goods such as CFL bulbs and sockets have been made cheaper by reducing VAT (value added tax) on them. Jaggery, a widely used food item particularly in the rural areas of the state, is exempted from the 5 percent tax net.[caption id=“attachment_655720” align=“alignleft” width=“380”] Assam Chief Minister Tarun Gogoi. Image courtesy PIB[/caption]

Tax rate on generator sets has also been brought down to 5 percent from 13.5 percent. Besides, electricity duty is exempted on generation of power through generator sets of 25 KVA.

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To discourage tobacco smoking, VAT on cigarette, bidi, cheroots, cigar and smoking mixture has been increased to 25 percent from 20 percent.

Entry tax on cement raw material clinker was raised to 6 percent from 2 percent, while that on marble, granite and other decorative slabs, furniture and fixtures, sanitary wares and bathroom fittings was increased to 6 percent from 2 percent.

The Budget also proposed a special rate of tax on sale of pre-owned vehicles.

The tax rate for brick fields, marble, sweetmeat, cooked food dealers was revised under the Composition Scheme.

To give a boost to the plastic industry, entry tax was reduced from two percent to one percent.

The Budget provided a boost to the tourism sector by levying luxury tax only on the actual room tariff charged instead of current practice of levying tax on published room tariff.

Giving relief to marginal dealers, the budget increased the exemption limit under Assam Value Added Tax Act, 2003 from the existing Rs 4 lakh to Rs 6 lakh, while that for retail dealers having turnover up to Rs 40 lakh was raised to Rs 60 lakh.

To encourage infrastructure and construction sector, the tax rate on stone chips and boulders was reduced from 13.5 per cent to 5 percent.

With an opening deficit of Rs 530.67 crore, the state’s estimated transactions during 2013-14 would result in an estimated deficit of Rs 821.90 crore, said Gogoi, who also holds the finance portfolio.

PTI