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Friday, 12 March 2010 20:46
Farmers to Feel Free- Fertilisers, agri tools will sell cheap as Govt scraps VAT, toll tax on imports
- No GST for tourism
- Revision in Power policy to woo private investors; Rs 1055 Cr revenue expected against Rs 2050 costs
- JK share in Central taxes: 1.5%
- 40% hike in newspaper ad rates
Jammu, March 12: Presenting the Rs 6000 crore annual budget for financial year 2010-11, Minister for Finance, Abdul Rahim Rather Friday termed it as “pro-people” saying agriculture and allied sectors was the focus of this budget.
Rather, who presented the second budget of the National Conference led coalition government said the fertilizers and the agricultural tools will sell cheap as the government had scrapped Value Added Tax and Toll Tax on their imports.
The budget lays thrust on improving agriculture and allied sectors with toll tax and VAT exemption extended to agriculture appliances, fertilizers and fodder.
“The aim is to increase the Gross State Domestic Product share of agriculture from 25 per cent to its erstwhile level of 47 per cent in 1980s,” Rather said presenting the 74-page budget.
“While the shares of secondary and tertiary sectors have improved due to the growing number of manufacturing and service units, there is stagnancy in primary (agriculture) sector. So for popularizing the mechanization of agriculture and horticulture farms, agriculture tools and implements are exempted from VAT and Toll Tax. The fodder, fertilizer, pesticides, weedicides and insecticides too are exempted from toll tax,” he said.
Rather said the toll tax exemption for fertilizers would give a major stimulus to agriculture sector as the cost of all fertilizers including urea would now be lowered by Rs 500 per metric tonnes.
Besides, fertilizers and agriculture implements, other things that came under Rather’s drive of abolishing VAT and Toll Tax include bee hives and bee colonies, solar energy equipments, Feni, Agarbatti, Dhoop, Anardhana, Guchchi and cheese.
Rather also said that from the next financial year a uniform tax regime, Goods and Services Tax, would be introduced throughout India and for 2010 year he proposed exemption of VAT and Toll tax on Industry and Tourism. He said a new trade policy is on the anvil favouring more investment and trade activity.
The Finance Minister said there would be no General Sales Tax for hotels, lodges and guesthouses.
“Income arising out of room rent by hotels, lodges and guesthouses is liable to tax. With a view to support the tourism industry, I had agreed to exempt such income from any tax leviable under the General Sales Tax Act,” Rather said. “We are hoping for better tourist arrivals during the next financial year. However, in order to continue support to this sector and the hotel industry, I announce continuation of such exemption from General Sales Tax Act for another period of one year commencing from 1st April 2010.”
The Finance Minister also announced a revision in power policy to woo private investors. He said a total of Rs 1055 crore revenue was expected against Rs 2050 crore costs.
For reformation of power sector, minimizing pilferage and recovery of dues, Rather said two new bills would be introduced in the current assembly session.
“An unmanageable gap exists between the amounts annually spent on power purchases and the total recoveries made by the department. For the next year we have kept the power purchase budget at Rs 2050 crore while against this the revenue realization target is only Rs 1055 crore. This means a loss of Rs 100 crore. So, to grapple with this alarming situation, the government is bringing new electricity bill and an electricity conservation bill during the current session,” he said.
Rather said that the State Hydel policy was being revised to make it simpler, more attractive and practicable for private investors in micro and mini hydel areas.
Commenting over the appreciation the State had received from the 13th Finance Commission on the economic needs, the finance minister said Jammu and Kashmir had a reason to be happy. “The Finance Commission has assured us that all economic needs would be addressed and fulfilled. This is a big thing and we should thank the commission for their award,” he said. “The present commission has enhanced our share in the Central Taxes to 1.55 per cent.”
Rather also announced 40 per cent hike in newspaper advertisement rates. “I’ve also decided to enhance the advertisement rates to media organization by 40 per cent. For this a budgetary provision has also been increased by Rs 150 lakh under revised estimates 2009-10 and further by Rs 245 lakh in 2010-11.”
Govt to form new trade policy for industrial sector
“The tax exemption time for stakeholders in industrial units has been extended by one more year,” Rather said. “For the upliftment of industrial sector in the State, formulation of a new trade policy is to be framed.”
GSDP up, GDP down
Taking credit of improvement in the financial management of the State, the finance minister asked people to “rejoice” as State’s growth rate had shown an upward trend in the current fiscal.
“The biggest indicator of State’s progress is the growth rate, which has increased considerably in the current year. Interestingly, the national GDP growth rate is at decline for the past five years, but ours (GSDP) is showing an upward trend. This is despite the fact that our exports have suffered for the second year in succession due to global economic meltdown and also that the agricultural production has been hit.”
JK gets Rs 40,439 Cr share in 13th FC
Rather said that the award of the 13th Finance Commission works out to Rs 40,439 crore, which is almost double of Rs 20,880 crore made available to the State by the previous commission.
Ladakh gets additional Rs 90 Cr
“Also for the first time, Rs 90 crore has been specifically allocated for Ladakh region,” he said.
Govt to ensure 100% grant utilization
He said that to ensure 100 per cent utilization of grants awarded by the 13th Finance Commission, government would constitute a High Level Empowered Committee headed by Chief Secretary to monitor the progress of expenditure on all relevant items.
“A Finance Commission Cell in the department of finance shall keep regular tab on the periodical progress registered by the concerned departments,” Rather said.
State to get Overseas Employment Corporation
He said that an Overseas Employment Corporation would soon come into existence. “The process for setting up of an Empowered Employment Facilitating Agency is also on.”
Voluntary Service Allowance for poor youth
He said: “Besides, the government has taken a bold and historical initiative of introducing Voluntary Service Allowance for unemployed youth hailing from financially weaker sections from the next financial year,” he said.
Rs 113.80 Cr kept for SKEWPY
The Finance Minister said a provision of Rs 113.80 crore had been kept under plan and non-plan for implementation of various schemes falling under Sher-e-Kashmir Employment Welfare Policy for Youth.
Service Tax up from 8% to 10%
Rather also announced that the service tax would go up from 8 per cent to 10 per cent and increase in toll from Rs 40 per quintal to Rs 50 per quintal.
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