The Finance Minister of Maharashtra presented the State budget for fiscal 2017-18 in an unprecedented atmosphere of commotion in the Assembly today afternoon. Other than the increase in Value Added Tax on liquor and hike in lottery tax, no new taxes have been introduced.
The Opposition parties were at loggerheads with BJP-Shiv Sena government over the issue of granting loan waiver to the farmers. As soon as the State Finance Minister Sudhir Mungantiwar rose to present his budget speech the Opposition benches started raising slogans, which continued right through the speech.
Rising above the din, Mungantiwar delivered the speech in customary high baritone, which was interspersed with couplets and occasional attack on the Opposition members.
Mungantiwar keeping in the mind the Goods and Service Tax (GST) regime, which will be implemented after July 1, has also not extended the tax exemptions, which were provided in the earlier budgets on a number commodities such as rice, wheat, pulses and tea.
He said that commodities and food items such as rice, wheat, pulses , turmeric, chilli, tamarind, jaggery, coconut, coriander, seeds, fenugreek, parsley, papad, wet dates, Solapuri bedsheets and towels are exempted from VAT till March 31, “I propose to continue exemption on these items up to the date prior to introduction of GST,”, the Minister said.
Providing clarity on GST regime, Mungantiwar said that every taxpayer will have to interact with one tax administration only, either Centre or State. The State has 90 per cent of taxpayers having turnover of less than Rs 1.5 crore tax liability, therefore, they will be administered by the State Government and rest 10 per cent tax payers by the Central Government,
Compensation draft bill providing reimbursement to the States after implementation of GST has been approved. For the purpose of computation of compensation, annual growth rate of 14 per cent on revenues for the year 2015-16 shall be considered.
Compensation amount shall also include Octroi in Mumbai and the Local Body Tax in the State. Generally, the burden of GST will be the same as the burden of prevailing taxes, he said.
The Minister considering the Centre’s policy for giving support to the aviation sector under Regional Connectivity Scheme for smaller cities has reduced the Value Added Tax on aviation turbine fuel sold to airlines, from five per cent to one per cent. The incentive will continue for a period of next ten years and would be applicable for flight services to Amravati, Gondia, Nashik, Jalgaon, Nanded, Solapur, Kolhapur, Ratnagiri, Shirdi and Sindhudurg in the State.