Jaipur, Jul 15 (KNN)  Rajasthan Chief Minister, Vasundhara Raje in her budget speech has proposed 30 per cent entertainment tax on cinemas and multiplexes, although theatre halls in villages having a population of less than one lakh have been exempted from the entertainment tax.

“Entertainment tax at the rate of 30 per cent on cinema, multiplex and video game parlours, with effect from 1.8.2014; cinema in towns having population upto 1 lakh and tickets costing less than Rs 75 exempt,” as per official data.

In addition, there would be a 5 per cent entry tax on LNG, industrial fuels, light diesel oil and 10 per cent luxury tax on heritage grand hotels.

Rajasthan which is among the top tourist destinations in the country is famous for historic havelis, forts and palaces, some of which have been converted into heritage hotels.  With the additional luxury tax, tourists are likely to feel the pinch.

Raje has also proposed a New Investment Promotion Policy to encourage new investments, backward areas and thrust area; and customized package for large and employment intensive investments. 

Also in the pipeline are  revised Textile Promotion Policy; revised Ceramic Promotion Policy; Investment under Food Processing Mission of over Rs. 1,000 crore in 5 years; Development of skill development hubs and IT industrial areas by RIICO; and Amendment in various labour Laws to minimise the rigidities of labour employment.

As far as taxes are concerned, among others, there will be VAT at the rate of 5 per cent on some spices, handicrafts costing more than Rs 1000, textile furnishing costing more than Rs 100 per metre and textile suiting and shirting costing more than Rs 500 per metre.  (KNN/ES)