Mobiles, 2-wheelers, cabs to cost more in Rajasthan

Mobile phones, two-wheelers and taxi services will cost more in Rajasthan while coffee, marble cutting tools and radio sets will be cheaper as the budget 2015-16 hiked VAT on certain items and removed entry tax on 14 other items.
While presenting the budget today, Chief Minister Vasundhara Raje announced removing entry tax on 14 items, including tin plate, coffee, cocoa, handpumps, AC pressure pipes, salt, gun powder, wireless reception instruments, marble cutting tool, diamond bits and radio sets.
However, she increased stamp duty, raised VAT on mobiles and other items and levied one-time tax on two-wheelers, cabs in the budget presented in the Assembly.

The new tax proposals, which will make mobile phones dearer among other items, will earn additional income of Rs 500 crore to the exchequer.
Raje, who also holds finance portfolio, projected an estimated Revenue Surplus of Rs 556.82 crore for 2015-16.
Saying that the state would be ready to implement Goods and Service Tax (GST) in April 2016, Raje said her budget aimed for sustainable, inclusive growth with priority sector identification for Rajasthan's economic progress and prosperity.

"Our plan is to link every village with a road, people should get 24x7 power supply and portable water," Raje said.
Raje proposed a plan outlay of Rs 71,405.78 crore in the budget estimate for 2015-16.

"This includes Gross Budgetary Support of Rs 57,322.77 crore, Internal and Extra-Budgetary Resources of Rs 13,147.59 crore and Resources of Participating Agencies for Public Private Partnership Projects of Rs 935.42 crore, she said.
Whereas the estimated fiscal deficit would be Rs 20,609.75 crore which is 2.99 per cent of GSDP, Raje said.
Among new tax proposals, VAT on mobile phones and its accessories has been increased from 5 per cent to 8 per cent, while on certain items the same has been increased from 14 per cent to 14.5 per cent.
Stamp duty on adoption of deeds, affidavits, certain categories of power of attorney and release deed executed has also been increased.

Raje also proposed one-time tax for two-wheelers up to 125cc, whereas light good vehicles, motor cabs, maxi cabs registered since April 1, 2007, would also pay "one-time lump sum tax" with the facilitation to pay the tax in six installment in a year.
On state's share in central taxes, Raje said the Centre had proposed to pay Rs 22,432 crore to Rajasthan in 2014-15 but due to amendments there was shortage to the tune of Rs 2615 crore in receiving the state's share.
On one side where Rajasthan would face revenue loss due to decline in crude oil and petroleum products, and on the other hand the share from centre taxes would further cause estimated loss of Rs 4,219.61 crore in the current fiscal, she said.