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Gujarat imposes Rs 880-crore additional taxes
Our Bureau
Gandhinagar, Feb. 25 The newly-elected Narendra Modi Government today tabled the budget for 2008-09 in Gujarat Vidhan Sabha, levying an additional tax of Rs 880 crore while leaving an estimated overall deficit of Rs 116.20 crore.
Tax over VAT
Presenting Budget for a record 13th time in the first session of the Twelfth Vidhan Sabha, the Finance Minister, Mr Vajubhai Vala, proposed to impose an additional tax, besides the existing Value-Added Tax (VAT) .
There will be an addition of 1 per cent in the tax rate of goods, which are being taxed at the rate of 4 per cent under the VAT Act. Similarly, there will be an addition of 2.5 per cent VAT on the existing rates of other taxable goods.Thus, the new rate of VAT will now be five and 15 per cent, respectively, depending upon goods.
Tax credit
Tax credit shall be allowed on additional tax also in accordance with the provisions of VAT Act. A Bill proposing necessary amendments in the Gujarat VAT Act, 2003, will be presented in the House during the current Budget session, he said.
The State Government has also decided, barring certain exceptions, to delegate powers to local bodies to levy, collect and retain the profession tax in their own local funds. This would make the local bodies directly receive revenue to the tune of about Rs 120 crore per annum.
While last year’s Budget left a revised surplus of Rs 1,517.94 crore, this year’s has left a gross deficit of Rs 876.20 crore, he added. The Annual Plan size for Gujarat for 2008-09 has been fixed at Rs 19,030 crore.
Among the proposals in the new Budget is the establishment of India’s first university for children as part of the State Government’s efforts to improve the parameters of human development index.
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