Modi provides succour to Transport and Sugar sectors
Patna, March 2 (UNI) In his maiden budget, Deputy Chief Minister and Finance Minister Sushil Kumar Modi has sought to provide the much needed succour to the tansport and sugar sectors.
Accepting long pending demands of the transport sector, Mr Modi has proposed to lower the tax on motor vehicles which would benefit the commercial vehicle owners.
"The government hopes to improve compliance and ensure a quantum jump in tax collection which is pegged at Rs 300 crores per annum," he added.
He said taxes on commercial vehicles were increased by 121 to 551 percent in 2002(taking 1994 rates as the base) depending on the category of the vehicles. With the frsh proposal in the budget, taxes on the commercial vehicles would come down to 1994 level, he noted.
Mr Modi clarified that new initiative of the government would bring the commercial tax rates in state at par with those prevailing in Jharkhand. For most commercial vehicles the new rates in Bihar would be much lower than that in Uttar Pradesh.
"The revenue of the transport department which generally registers an upward trend year on year, posted a negative 18 per cent growth in 2004-05," Mr Modi said.
The state government hoped to reverse this trend after the implmentation of new tax proposals, he maintained.
Announcing bonanza for the sugar sector, Mr Modi said capital grants and other facilities would be provided to investors in the sugar cane development area. A sum of Rs 5 crores had been provided for promoting research and development in this sector, he underlined during his budget speech.
"The Bihar government has come up with new sugarcane policy under which purchase tax levied on buying cane by sugar mills has been abolished," Mr Modi added.
A state Investment Promotion Council has been constituted to promote industries and it would also clear proposals received from prospective investors under single window system, he informed the house.
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