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
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 on Friday, 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.
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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 enrollment 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.
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