Mumbai, Mar 22 (KNN) Textile for industrial use, tobacco products, gold and silver will cost more as the Maharashtra government in its annual budget for 2013-14 has increased sales tax on these items.  However, rice, wheat, pulses, flour, turmeric and chillies have become cheaper with exemption in duties.

“Tax on cigarettes will be raised from 20 per cent to 25 per cent and bidis from 5 per cent to 12.5 per cent.  While 12.5 per cent tax on branded tobacco sold in pouches will remain unchanged, unmanufactured tobacco, which was hitherto tax free, would be taxed at 12.5 per cent,” said Deputy Chief Minister of Maharashtra, Ajit Pawar who also holds the Finance portfolio, while speaking in the state assembly.

The budget has very little for the MSMEs engaged in manufacturing of tobacco products, gold and silver, as many of the sectors that fall under its purview have been taxed additionally.

However the government has reduced taxes on the agricultural products.

“Some essential goods like rice, wheat, pulses and their flour, chillies, tamarind, jaggery, coconut, coriander seeds, fenugreek, parsley, papad, wet dates, Sholapuri bed sheets and towels are exempted from tax up till the end of this month,” Pawar said.  

The concessions for the above mentioned items as also currants, raisins and tea will continue until March 31, 2014, he added.

With regard to the state's financial situation, last year, revenue receipts were estimated at Rs 1,36,711.70 crore and the revised estimates of revenue receipts, considering the trend of revenue collection during the year, had been pegged at Rs 1,44,622.70 crore. Further, revenue surplus which was expected to be Rs 152.49 crore was now expected to come down to Rs 26.51 crore for the current fiscal.

As for the year 2013-14, revenue receipts are expected to be Rs 1,55,986.95 crore and revenue expenditure Rs 1,55,802.57 crore, leaving an estimated surplus of Rs 184.38 crore.

Pawar also indicated that the size of the annual plan for 2013-14 had been pegged at Rs 46,938 crore.  In addition, an amount of Rs 4787.68 crore, which is 10.2 per cent of the annual plan size, had been earmarked for scheduled castes sub-plan, while Rs 4177.48 crore, 8.9 per cent of plan, had been kept aside for tribal sub-plan.

Keeping in mind the severe drought situation the government he said was fully committed to scarcity mitigation measures on which an expenditure of Rs 1164 crore was expected.

For industrial promotion, subsidies totalling Rs 2500 crore had been budgeted.  Besides, as much as Rs 939 crore had been allocated for electricity subsidy for powerlooms, while Rs 123.11 crore would be provided for allied and basic infrastructure for promotion of industry.  (KNN)