As per budget estimates, the surplus was estimated at Rs 245.49 crore.
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While presenting this year's budget, Finance Minister Saurabh Patel on Tuesday said the state government granted total tax waiver to bamboo and bamboo articles, pedal rickshaw and cycle rickshaw, mosquito net, sanitary napkin, adult diapers and frozen semen.
On the other hand, tax rates were hiked for luxury cars, sports utility vehicles (SUVs) as well as two wheelers, along with pan masala, and industrial salt.
In order to encourage services sector and to accelerate employment opportunities at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, the state government announced exemption from payment of stamp duty to share broking transactions of share brokers who establish their registered share broking office at GIFT City as well as operate and trade from there.
Patel said that fatal diseases like malaria, dengue and some others are spread through mosquitos. With the objective of 'healthy Gujarat', he proposed to fully exempt mosquito nets from a current tax of 5 per cent including additional tax. Similarly, to boost employment and livelihood the minister exempted pedal rickshaws and cycle rickshaws from taxes.
In order to promote animal husbandry and dairy industry in the state, this budget proposed to fully exempt frozen semen from the current tax of 15 per cent.
Tax on ceramic products has been reduced from a current rate of 15 per cent to 5 per cent. As a result of reduction in the rate of tax and exemption from tax on items mentioned above, people of Gujarat would get a relief of roughly Rs 171 crore.
However, institutional purchase of luxury cars and SUVs priced at more than Rs 15 lakhs as well as two wheelers priced at over Rs 2.5 lakhs would now attract tax rate of 20 per cent including additional tax as against the existing 15 per cent. On the other hand, tax levy was hiked from 15 per cent to 25 per cent on pan masala while a tax of five per cent was levied on industrial salt used in manufacturing of goods.
"Trade of dealers of the state is affected adversely as also the state suffers loss of tax revenue due to sale of goods through supplies in the state from outside the state under e-commerce transactions. By capturing such transactions under the Entry Tax, the dealers of the state would get level playing field. I, therefore, propose to cover the goods coming in the state through e-commerce under the Entry Tax," Patel said.
To further boost small dealers in the state, a 100 per cent provisional refund within 30 days from the date of submission of all documents was proposed, to the dealers to whom refund upto Rs 1 lakh is to be paid.
Moreover, for a smooth rollout of the Goods and Service Tax (GST), the state government also announced an amnesty scheme wherein outstanding dues upto 31 December 2015 under the Sales Tax Act, Value Added Tax Act, Motor Spirit Act and the Central Sales Tax Act will be covered under the scheme, apart from remittance of interest and penalty on full payment of outstanding principal tax amount, except in cases of tax evasion.
Further, in cases of outstanding recovery in cases of tax evasion, full amount of principal tax and interest; and 25 per cent of penalty amount will have to be paid.