The Maharashtra Budget for 2016-17 has proposed Rs 25,000 crore for the farm sector in view of a severe drought in the state.
It also tweaked certain taxes such as VAT and offered some exemptions for sugarcane and profession tax.
Presenting the second Budget of the Fadnavis government today, Maharashtra Finance Minister Sudhir Mungantiwar raised the Motor Vehicle Tax on two and three wheelers.
This tax will be based on engine capacity - up to 99cc, 8 per cent; 100cc to 299cc - 9 per cent, 300cc and above - 10 per cent. Institutional and imported vehicles will be subjected to double the rate of tax.
VAT on coconut hair oil sold in packs of up to 500 ml has been enhanced to 12.5 per cent.
Exemption from levy of Sugarcane Purchase Tax for the year 2015-16 will be given to the sugar factories which export sugar as per the government policy, Mungantiwar said.
He also announced an amnesty scheme for Profession Tax enrolment holder.
Tax liability and penalty will be restricted to previous three years, he said.
Under the amnesty scheme for tax administered by Sales Tax Dept, the interest and penalty will be waived for dues up to March 31, 2005 subject to full tax payment, and also for disputed dues from April 1, 2005 to March 31, 2012 subject to full tax payment. 25 per cent interest payment under VAT Act and balance dues will also be waived, he said.
Exemption of VAT will be given on warping and sizing of yarn for promoting the textile industry, he said.
Turnover limit for composition to retailers under the MVAT Act has been increased from Rs 50 lakh to Rs 1 crore.
VAT on the mammography machines used for detection of breast cancer will also be exempted.
VAT on sterile water for injections will be reduced from 12.5 per cent to 5.5 per cent, Mungantiwar said.
For the bakery industry, the turnover of tax free goods would be excluded for computing the turnover for composition.
VAT on retrofit kit fitted to vehicles for physically handicapped would be exempted.
Profession Tax exemption will be given to the personnels
of CRPF and BSF.
Exemption will be given from late fee to the government aided educational institution for e-filing of Profession Tax returns.
VAT on LED tubes and pyrolysis oil has been reduced from 12.5 per cent to 5.5 per cent.
VAT on steel wire mesh, barbed wire, chain links, pencil box, stapler pins, dusters, gum and gum-sticks used by students has also been reduced from 12.5 per cent to 5.5 per cent. It has been exempted for bamboo products, excluding bamboo furniture.
Amnesty scheme under Industrial Policy 2013 for closed and un-revivable units will be implemented afresh, Mungantiwar said.
Logistic hubs will be established to promote the logistics industry and levy of CST will be exempted on the interstate sales effected from the logistic hubs, he said.
VAT rate has been increased from 5 per cent to 5.5 per cent excluding declared goods, he said.
The VAT composition tax rate will be 8 per cent for hotels and restaurants having turnover of sales Rs 3 crore and more.
There will be levy of entry tax on marble and granite slabs and increase in lottery tax on the draws of lotteries.
Input tax ledger will be made available to the tax payer, he said.
A pilot project will be started by Sales Tax Department for implementation of digital billing system, the Finance Minister said.
Mungantiwar also announced establishment of Advance Ruling Authority for speedy disposal of disputed issues under Sales Tax Laws and implementation of SAP based computer system in the Sales Tax Department.
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Disapproving noisy protest by Opposition members, Speaker Haribhau Bagde asked them to take their seats and stop playing the cymbals.
Mungantiwar slammed the Opposition for creating din in the House during budget presentation.
"The Opposition members don't want to hear details of a budget which is focused on welfare of farmers. Their behaviour reminds me of a Sanskrit proverb, 'vinaash kaale vipreet buddhi' (when one's destruction time is soon to arrive, one thinks negatively)," the minister said.
"We thought after suffering a huge defeat in the recent local body polls they (Opposition parties) would hear out what the government plans to do for farmers," he said.
Interestingly, the Shiv Sena members, who had joined the Opposition protests in the House over farm loan waiver in the last few days, did not take part in the ruckus.
Meanwhile, members of the Congress and the NCP created ruckus in the Legislative Council, too, and almost clashed with their ruling alliance counterparts while trying to stop budget presentation.
Minister of State for Finance Deepak Kesarkar, barely audible amid the din, however, continued with his budget speech with Opposition members throwing pieces of paper and raising slogans demanding a loan waiver.
The agitated MLCs put up a banner in front of Kesarkar to obstruct cameras from capturing his video. The banner was later removed at the insistence of Chairman Ramraje Nimbalkar.
An irritated Shiv Sena leader and Minister Diwakar Raote asked Kesarkar to stop his speech and simply table the budget in the Upper House. The Opposition members broke into devotional songs even as he continued with his speech.
