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| Himachal pradesh Budget raises VAT, entry tax |
| BS Reporter / Shimla Mar 13, 2010, 00:39 IST |
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VAT has been raised to 5% from 4% on all items.
The Himachal Pradesh Budget for 2010-11 has proposed to raise the value added tax (VAT) from the existing 4 per cent to 5 per cent on all items, except edible oils and foodgrains.
Presenting the Budget in the state Assembly here today, Chief Minister Prem Kumar Dhumal said he proposed to introduce tax on entry of goods into local areas. A Bill on the same will be introduced in the current session with the objective to generate additional tax revenues.
The entry tax is proposed to be levied on goods used by industries and projects, and on those imported for turnkey projects, pan masala, tobacco, cigarettes, among other items.
According to an estimate, over Rs 100 crore is expected to be collected by raising VAT and the entry tax.
The total Budget outlay for the next year is Rs 15,078 crore.The annual plan is Rs 3,000 crore. Around 64 per cent plan outlay will be focussed on capital investment.
The total revenue receipts are estimated at Rs 11,588 crore and the total revenue expenditure is estimated at Rs 12,093 crore, leaving a deficit of 5.04 per cent on revenue receipts.
On the capital account, the total receipts expected are Rs 2,798 crore and capital expenditure, including loan repayments, is estimated to be around Rs 2,985 crore.
Out of every Rs 100 spent, salaries will account for Rs 30, interest payments Rs 15 and loan repayments Rs 8. Pensions will draw Rs 12, maintenance Rs 8 and the remaining Rs 27 will be spent on all other activities, including major developmental works. The state will have Rs 77 from total revenue receipts, including transfers from the Centre. The gap of Rs 23 will have to be met by borrowings.
The Budget has formulated a Rs 372-crore plan to diversify agricultural activities and increasing farm income. A Rs 85-crore ‘apple rejuvenation project’ will be started to replace old apple root-stocks to help increase yields. In the power sector, 600 Mw of hydro power will be added next year.
In the field of tourism, the brand ‘Himachal’ will be strengthened under the caption ‘unforgettable Himachal’.
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