Govt to levy tax on alcohol, tobacco products
By Our Reporter
SHILLONG: Chief Minister Dr Mukul Sangma presented in the State Assembly on Monday Rs 382-crore deficit budget for 2012-13 with additional taxation measures yielding Rs 12 crore.
Presenting the budget, Dr Sangma, who is also in charge finance, said that the estimated fiscal deficit is Rs 37 crore less than that of 2011-2012.
The total receipts for 2012-2013 has been estimated at Rs 7618 crore which is an increase of Rs 1411 crore or 22.7 per cent over the current year.
The estimated total receipts for 2011-2012 was Rs 6207 crore of which the revenue receipts was Rs 5602 crore and capital receipts was Rs 605 crore.
Estimating the plan expenditure, including Centrally-sponsored schemes, Central Sectors schemes, North Eastern Council and Non-Lapsable Central Pool of Resources at Rs 4413 crore for 2012-13, Dr Sangma proposed an outlay of Rs 747 crore for education, Rs 744 crore for PWD, Rs 723 crore for Agriculture and allied sectors, Rs 301 crore for Public Health Engineering, Rs 290 crore for Power, Rs 282 crore for Community and Rural Development and Rs 228 crore for Health.
Dr Sangma informed that the total non-plan expenditures for 2012-2013 has been estimated at Rs 3189 crore, an increase of 12 per cent from the budget estimate of 2011-2012.
He also informed that the interest payment during 2012-2013 is estimated at Rs 336 crore and pension payment at Rs 226 crore.
The funds which has been earmarked for payment of the salaries is around Rs 1840 crore.
Dr Sangma proposed a non-plan budget of Rs 506 crore for Education, Rs 350 crore for the Police, Rs 297 crore for PWD, Rs 228 for Agriculture and Allied Sectors and Rs 170 crore for Health sector.
Imposing fresh taxes on alcohol, tobacco and tobacco products, Dr Sangma proposed to introduce advalorem mode and increase VAT on Indian Foreign Made Liquor (IMFL), besides enhancement in licence fees for all categories of excise licences.
He also levied fresh VAT on tobacco and tobacco products from Rs 12.5 to Rs 13.5 per cent besides a plan to include Beedi in the tax net by way of amendment of the appropriate schedule.
Later speaking to reporters, the Chief Minister said that the Government is proposing a plan outlay of Rs 3535 crore for the next fiscal year.
Dr Sangma informed that the fiscal indication of the State is a healthy one since debt -GSDP ratio is only 28 per cent which is in conformity of the FRBM Act.
“In fact, the State has been able to maintain the debt-GDSP ratio below 30 per cent as in conformity with the FRMB Act for the past three to four years which is really an encouraging sign,” the Chief Minister said.
Replying to a query, he said that the main reason which has enabled the Government to bring down the fiscal deficit to Rs 37 crore is due to the various exercises carried out by the Government including the increase in its revenue based resources, getting more grants from the Union Government, getting better share from the Central taxes among others initiatives which it had taken in the current fiscal year.
When asked about the austerity measures taken by the Government to bring down its expenses, Chief Minister said that the Government has taken various curb down its expenses.
Besides improving the process of governance and the delivery system, he said that the Government would also have to look into the problem of time over run and cost overrun while implementing the various projects.
In order to mobilize additional resources, he said that the Government would increase the excise slab on IMFL with consequential increase in excise duty on advalorem mode and the VAT component of liquor in the next fiscal year.He also informed that for the first time, the Government is planning to include ‘beedi’ in the tax net.
“The Government is still working out on the details of the taxes to be imposed on ‘beedi’. It would definitely be a minimum one,” Chief Minister said.