People will pay more on property transactions, purchase of built-up space, vehicle taxes and domestic brands of liquor purchased outside the State from the coming financial year.
Tamil Nadu has jacked up these taxes in the Budget to increase revenue to support social and primary sectors.
The Government says it will speed up infrastructure development to spur industrial growth and boost job for economic development.
The Government has forecast a 16-17 per cent growth in commercial taxes and State Excise and about 30 per cent increase stamp duty and registration charges and motor vehicle taxes to support its expenditure.
The Finance Minister, Mr O. Paneerselvam, presenting the Budget in the Assembly, said the Government's welfare and development programmes which call for increased resources.
Liquor bought from outside the State, except those covered under the Customs Duty Act, will attract higher tax, VAT exemption has been withdrawn on vegetable oil trade up to a turnover of Rs 5 crore a year, vehicle tax is to be rationalised and the hike in guideline values, which form the basis for stamp duty and registration on property transaction, will come into effect from April 1.
The State Government will also hike by 50 per cent the levy of infrastructure and amenities charges on built up space.
These will net the Government over Rs 1,500 crore, he said.
According to officials, the increase in revenue includes the hike in guideline value which will drive up stamp duty and registration revenue by Rs 600 crore and the tax on liquor will add about Rs 150 crore.
Agriculture
The sector has been given the highest ever allocation of about Rs 3,800 crore. Tamil Nadu has set a food grain production target of 120 lakh tonnes against 105 lakh tonnes expected for 2011-12. The output will be increased through better farm productivity, crop diversification, farm mechanisation and efficient water usagee efficiency, the Minister said.
Industry
The Services Sector continues to drive the State's economic growth the primary sector grow at 2.63 per cent and the secondary sector at 7.12 per cent in 2011-12. Higher investments and support are needed for the growth of agriculture and industry, he said.
The State Government is confident of attracting over Rs 20,000 crore investments over the next six months. Eleven companies are in talks with the State Government and are expected to finalise investment plans. Other major investment proposals to be approved by the Government include those by Yamaha, Eicher, Danfoss, Enfield, Philips Carbon, Sundaram Clayton, TI Group, Saint Gobain, Sanmina-SCI and Nokia, he said.
Mr Paneerselvam said the Tamil Nadu Government is concerned that the share of manufacturing sector's contribution to the State GDP has slipped to 17 per cent in 2009-10 from 20 per cent in 2004-05.
A new industrial policy will be announced to support the growth of manufacturing sector which is key to job generation and economic growth, he said.
The State-run Tamil Nadu Industrial Development Corporation will set up a Rs 160 crore Polymers Conversion Industrial Park in Thiruvallur District and the State Industrial Promotion Corporation of Tamil Nadu is creating a land bank of over 20,000 acres to allocate space for industries.
Infrastructure
The State Government has allocated Rs 1,000 crore for the formation of a Tamil Nadu Infrastructure Development Fund. A law will be enacted to set up a Tamil Nadu Infrastructure Development Board to implement infrastructure projects.
The Minister said the State Government has provided Rs 1,500 crore as share capital support for investing in new power projects. The State's own power generation capacity is about a third of the electricity demand. On going projects have to be expedited. The State Government will also support the electricity utility, Tamil Nadu Generation and Distribution Company with the required funding for new projects. Subsidy support of Rs 3,068.78 crore has been provided for 2012-13.
TAXES
Exemption and tax cuts
wheat, oats, insulin, helmets and handmade locks exempt from VAT
tax on electrically operated two wheelers, compact fluorescent tubes, splints and veneers used in match box industry, sanitary napkins and diapers cut to 5 per cent from prevailing 14.5 per cent
Stamp Duty cut to 5 per cent from the present 6 per cent
Tax Hike
on liquor sold in bars and restaurants, infrastructure and amenities charges on built up space
VAT exemption removed for turnover up to Rs 5 crore on vegetable oil trade
Major subsidies
Food subsidy – Rs 4,900 crore
Social security pension – Rs 3,820 crore
Electricity subsidy – Rs 3,069 crore
Free distribution of household appliances – Rs 2,000 crore
Free laptop computers for students – Rs 1,500 crore
Noon meal scheme – Rs 1,423 crore
Integrated Child Development Scheme – Rs 1,217 crore
Solar powered houses for the poor – Rs 1,200 crore