She proposed a revision of tax regime to earn Rs 350 crore revenues. Raje, who is also holding the Finance portfolio, announced in the state Legislative Assembly here a total plan outlay of Rs 69,820 crore for 2014-15 compared to Rs 40,500 crore of 2013-14, an increase of 72 per cent.
Presenting a Revenue surplus Budget for the current fiscal, Raje said the estimated fiscal deficit would be Rs 20,186 crore in 2014-15 which is 3.52 per cent of GSDP. The estimated budgetary deficit would be Rs 3,151 crore for this fiscal, she said. In a series of tax relaxations or rebates to the tune of Rs 150 crore to people, Raje proposed no tax on work-book, biogas, 'reetha and shikakai' and takeaway cooked food from restaurants.
Also, VAT on oilseeds has been reduced from 5 per cent to 3 per cent and on desert cooler and room coolers' body to 5 per cent from 14 per cent earlier. There was a range of VAT on sale of used motor vehicles from Rs 2,000 to Rs 8,000, now there would be one 2.5 per cent VAT on Used Motor Vehicles, Raje said.
She proposed a composition scheme for builders and devlopers, reduction in VAT on ATF (air turbine fuel) from 20 per cent to 5 per cent for developing air service hub on the inter-state circuit. Tyre and tube produced by vehicle producers, and the raw material used in wind mill manufacturing has been exempted from entry tax, she said.
Paying guest house and heritage hotels approved by Tourism Department have been exempted from luxury tax, the hertitage hotels' luxury tax during off-season has been reduced to 50 per cent, the Chief Minister said. Tax regime on stamp and registration of land matters, marriage garden, farm house, resorts, and reconstruction have also been relaxed in the budget proposals, she said.
Under a new VAT regime to earn revenues to the tune of Rs 350 crore, Raje said 'Saboot Masale' (raw spices), handicraft above Rs 1,000, textile furnishing, textile suitings and shirting above Rs 500 metre would bear 5 per cent VAT. VAT on marble stone would be based on its weight and size, UPS' battery and invertor would be costlier with 14 per cent VAT, and 10 per cent entertainment tax on DTH, cable TV and video game parlours from August 1, 2014, she said.
The Chief Minister also proposed 30 per cent entertainment entertainment tax on cinemas and multiplexes, while cinema halls in villages having population of up to 1 lakh have been exempted from entertaiment tax. 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, she said.
Raje also proposed one time tax on 200cc motor cycle, middle class cars, and green tax on diesel run cars and SUVs. On late payment of VAT the state proposed a fine of Rs 12 percent on compound interest basis, and cess tax on infrastrucutre development, she said.
For improving the indirect tax system, Raje said her government also wanted to bring GST (Goods and Services Tax) for better coordination of centre-state tax relations, she said. Taking Tax and revenue collection on hi-fi and e-governance mode, Raje said all assessment of taxes would be online from April 1, 2015, she said.
Raje announced to set up a GST Consultation Committee to formulate GST policy in consultation with the Central government and abolition of Tax Settlement Board to reduce tax litigation cases. For realy segment, Raje proposed a fresh stamp duty range on sale of apartments in multiplexes from 2 to 4 per cent.
The state would introduce e-stamp availability to save paper stamps, and provide training to vendors in 91 independent deputy-registrar offices, she said. The land rate revision by District Level Committee (DLC) would automatically revised at the rate of 10 per cent annually if it is not examined by the Urban Development agencies, she said.
On bordering towns, a Rajathan Drinking Water Grid would be set up, and 5000 RO water purifier would be set up in villages under safe drinking water mission, she said. A sum of Rs 289 crore would be provided for 12 drinking water projects, and water charges would be made logical, she said.