The Hindu Business Line : Cameras, cell phones to be dearer in State

Prices of mobile, cordless, video phones as well as digital and video cameras are set to increase in Maharashtra with the Government hiking VAT (value-added tax) from four per cent to 12.5 per cent in its additional Budget presented here on Thursday. The interim was passed in March.

Mr Dilip Walse Patil, Finance Minister, also announced doubling of stamp duty on advertising contracts, rights of telecasting and copyrights. The maximum limit of Rs 25 crore on amalgamation deeds of companies has been done away with.

Motor vehicles tax

The seven per cent motor vehicles tax will now give way to three different slabs. It will continue at the same rate for vehicles costing below Rs 10 lakh, going up to eight per cent for the Rs10-20 lakh range and nine per cent for vehicles costing above Rs 20 lakh.

Solar panels

To encourage use of solar energy, Mr Patil has recommended complete VAT exemption for solar panels, cookers, heaters, generating sets and pump sets. The tax on compact fluorescent lamps is down from 12.5 per cent to four per cent.

Hotels and restaurants with up to a three-star rating will have to pay lower VAT of five per cent compared to eight per cent.

Mr Patil said that receipts on account of VAT were up 9.28 per cent to Rs. 33,954 crore during 2008-09. A simplified VAT refund scheme will be implemented for dealers with refund below Rs 5 lakhs, he added.

Irrigation sector

The Government has also made a provision of Rs 7,578 crore to remove the backlog in the irrigation sector.

Between 2004-05 and 2008-09, Rs 22,368 crore worth investments were made in irrigation projects.

Mr Patil said nearly 5.4 lakh hectares had been covered in the process which had led to an increase in production.

The backlog was down to Rs 947 crore last fiscal from a level of Rs 5,501 crore in end-2000 thanks to provisions made from time to time.

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