Kolkata, Feb 18 (KNN) West Bengal Finance minister Amit Mitra on Friday tabled the West Bengal Finance Bill, 2017 which is likely to give benefit to 1.06 lakh traders from payment of tax to dealers having turnovers more than Rs 10 lakh and upto Rs 20 lakh.

The threshold of the turnover for VAT liability has been increased from the present Rs 10 lakh to Rs 20 lakh. So long, traders having turnovers upto Rs 50 lakh used to enjoy the benefit of the composition scheme.

From now onwards, small manufacturing dealers with upto Rs 50 lakh turnovers have been brought under the scheme. The mandatory VAT audit report has been removed and this is going to benefit businessmen immensely, according to a release by All IndiaTrinamool  Congress.

Mitra said that the state government would give benefit those dealing with biodiesel by completely exempting tax.

Similarly, those doing business with hairbands and hairclips would not have to pay tax. Such benefits would be extended to those dealing with water heaters, kerosene stoves, leaf plates and cups and terracotta tiles. The rate of tax has been lowered from 14.5 percent to 5 percent on sale of machinery for generation of electricity from waste.

Dr Mitra said the steps would help small traders and manufacturers whose number would be around 1.06 lakh. The Bill also seeks to amend the Indian Stamp Act, 1899 and the West Bengal Taxation Tribunal Act, 1987. Also, the West Bengal Tax on Entry of Goods into Local Areas Act 2012 was sought to be amended.

Dr Mitra also said as an effect of demonetisation, middle class people were finding it difficult to buy flats as they have to pay seven per cent stamp duty on the value of the property on the date of booking a flat or a housing property. It may be recalled that the state government has decided to give Rs 50,000 to 50,000 craftsmen who used to work in other states in the gems and jewellery industry and those who lost jobs due to demonetisation.

The state government has also enhanced the remuneration of anganwadi and Asha workers by Rs 500. The West Bengal Appropriation Bill was passed by the state Assembly on Friday with the House approving Rs 14,708 crore as additional expenditure for social infrastructure projects.

Moving the Appropriation Bill 2017, state Finance minister Amit Mitra said a sum of Rs 14,708 crore would be spent for social infrastructure projects like housing, rural electrification and supply of rice to APL and BPL families. A sum of Rs 3,137 crore would be spent on supplying rice to families belonging to the APL and BPL categories, Mitra said, adding Rs 1,022 crore was proposed to be spent for rural electrification.