Karnataka Budget Highlights

TAX PROPOSALS

• Goods and Services Tax: Necessary steps to prepare Trade and Industry and department for smooth transition to Goods and Services Tax (GST) System.
• Commercial Taxes: Revenue collection target fixed at Rs 46,250 crore for 2015-16
• Value Added Tax: Successful implementation of online uploading of purchase and sales details

Reliefs

• Increase in registration limit from Rs 7.5 lakhs of annual turnover to Rs 10 lakhs
• Tax exemption on paddy, rice, wheat, pulses and products of rice and wheat continued for one more year
• Tax exemption on Footwear costing upto Rs 500 per pair, certain solar PV panels and solar invertors, handmade products like floor mats, table mats and runners, utility bags made of banana fibre excluding rubberised banana fibre products
• Tax reduction from 14.5% to 5.5% on wick stoves, mobile phone charger, m-sand, m-sand manufacturing machinery/ equipment, industrial cables namely XLPE cables, optical fibre cable and PVC cable, pre-sensitised lithographic plates used in printing industry, packing materials like pallets, box pallets and other load boards, pallet collars

Additional Resource Mobilisation Measures

• VAT on Cigarettes, Cigars, Gutkha and other manufactured tobacco hiked from 17 per cent to 20 per cent
• Sales tax rate increased by one per cent on petrol and diesel

Rationalisation Measure

• Provision for single first appeal against re-assessment for several tax periods of one financial year
• Enhancement of period for disposal of appeal by KAT from 180 days to 365 days from the date of stay order
• Provision to claim input tax credit of previous tax periods in the returns, filed during subsequent tax periods by amending sub section 3 of section 10 of KVAT Act, 2003
• Provision to limit input tax credit to the extent of output tax paid on a particular commodity by amending section 11 of KVAT Act, 2003
• Provision to deduct tax at source, at applicable rate, on goods purchased by government department or local authority or local body or others
• Granting permission for Special Accounting Scheme is to be brought under 'Sakala'
• Enabling dealers to file an appeal electronically before the first Appellate Authority and to receive orders electronically
• Enabling the dealers to upload the details of CST statutory forms which will be linked to the turnover declared by the dealers in their returns

Profession Tax Act

• Profession Tax exemption to senior citizens who have attained age of 60 years and above
• Professional tax exemption to persons drawing salary/wages less than Rs 15,000 in a month Agricultural Income Tax
• Replanting allowances hiked from Rs 900 to Rs 2,050 per metric tonne coffee produced

EXCISE

• Revenue collection target of Rs.15,200 crores fixed for the year 2015-16
• Setting up of a Vision Group for develop of a comprehensive vision for agriculture sector

IN GENERAL

• Formulation of Micro Irrigation Policy 2015-16 for efficient use of water
• Establishment of 'Centre of excellence in dry land agriculture research' for research and training
• Launch of a 'Krishi Abhiyaana' for addressing agriculture related issues
• Launch of new scheme 'Pashu Bhagya'
• Short-term loans up to Rs 50,000 at zero per cent interest through cooperative banks for cattle feed
• Formation of 5 farmer producers' organisations in northern Karnataka and 3 in southern Karnataka
• Blue revolution in inland fisheries through short-term loans of up to Rs 1 lakh at zero per cent interest to fish farmers
• Continued utmost importance to the implementation of Upper Krishna Project Stage-III
• Six new medical colleges to start functioning at Kalaburagi, Gadag, Koppal, Karwar, Chamarajanagar and Kodagu
• Formation of a vision group for industrial development
• Development of the Bengaluru-Mumbai Economic Corridor (BMEC) on 10,000 acres over next five years
• Rs 200 cr For setting up Karnataka Mining Environmental Restoration Corporation for the rejuvenation of mining affected areas in Bellary, Chitradurga and Tumakuru
• Implementation of a Startup Policy. Setting up of 'Start-up Fund' and 'Hack Cellerator'
• Establishment of IT Park in Bagalkot
• Rs 12.10 crore State contribution towards commencement of Indian Institute of Information Technology at Hubli-Dharwad
• Formulation of new Bio-Technology Policy including a bio-venture fund
• Setting up of Security Operational Centre in State Data Centre
• Rs 50 crore Towards implementation of recommendations made by Karnataka Tourism Vision Group
• Establishment of 20 tourism trekking tracks (eco trials) in Western Ghats
• Rs 50 crore For establishing Central Command Centre in Bengaluru and purchase of modern arms