Raj govt scraps taxes on work book, biogas in Budget 2014-15

Rajasthan Chief Minister Vasundhara Raje today proposed scrapping tax on work-book, biogas, 'reetha and shikakai' and takeaway cooked food from restaurants, reduced VAT on oilseeds but increased taxes on raw spices, textile furnishings in state Budget for 2014-15.
She proposed a revision of tax regime to earn Rs 350 crore revenues. Raje, who is also holding the Finance portfolio, announced in the state Legislative Assembly here a total plan outlay of Rs 69,820 crore for 2014-15 compared to Rs 40,500 crore of 2013-14, an increase of 72 per cent.
Presenting a Revenue surplus Budget for the current fiscal, Raje said the estimated fiscal deficit would be Rs 20,186 crore in 2014-15 which is 3.52 per cent of GSDP.

The estimated budgetary deficit would be Rs 3,151 crore for this fiscal, she said.
In a series of tax relaxations or rebates to the tune of Rs 150 crore to people, Raje proposed no tax on work-book, biogas, 'reetha and shikakai' and takeaway cooked food from restaurants.
Also, VAT on oilseeds has been reduced from 5 per cent to 3 per cent and on desert cooler and room coolers' body to 5 per cent from 14 per cent earlier.

There was a range of VAT on sale of used motor vehicles from Rs 2,000 to Rs 8,000, now there would be one 2.5 per cent VAT on Used Motor Vehicles, Raje said.

She proposed a composition scheme for builders and devlopers, reduction in VAT on ATF (air turbine fuel) from 20 per cent to 5 per cent for developing air service hub on the inter-state circuit.
Tyre and tube produced by vehicle producers, and the raw material used in wind mill manufacturing has been exempted from entry tax, she said.
Paying guest house and heritage hotels approved by Tourism Department have been exempted from luxury tax, the hertitage hotels' luxury tax during off-season has been reduced to 50 per cent, the Chief Minister said.
Tax regime on stamp and registration of land matters, marriage garden, farm house, resorts, and reconstruction have also been relaxed in the budget proposals, she said.

Under a new VAT regime to earn revenues to the tune of Rs 350 crore, Raje said 'Saboot Masale' (raw spices), handicraft above Rs 1,000, textile furnishing, textile suitings and shirting above Rs 500 metre would bear 5 per cent VAT.
VAT on marble stone would be based on its weight and size, UPS' battery and invertor would be costlier with 14 per cent VAT, and 10 per cent entertainment tax on DTH, cable TV and video game parlours from August 1, 2014, she said.
The Chief Minister also proposed 30 per cent entertainment entertainment tax on cinemas and multiplexes, while cinema halls in villages having population of up to 1 lakh have been exempted from entertaiment tax.

There would be a 5 per cent entry tax on LNG, industrial fuels, light diesel oil and 10 per cent luxury tax on heritage grand hotels, she said.