No tax in budget, Rs 400 crore relief in election year

Gandhinagar, Feb 23 (UNI) The Gujarat government today announced no fresh taxes and provided relief amounting to Rs 400 crore, mainly to electricity consumers by reducing duty.

The announcement comes in the run up to the assembly elections, to be held in the last quarter of 2007 in the state.

The Modi Government, as a pre-election bonanza to 93 lakh electricity consumers in the state, has announced cuts in electricity duty rates amounting to Rs 223 crore, followed by relief in stamp duty amounting to Rs 126 crore.

A relief of Rs 47 crore has been announced in the registration of immovable property while Rs four crore benefit is being provided in entertainment and luxury tax.

Presenting his record 12th budget in the Assembly, State Finance Minister Vajubhai Vala said electricity duty for rural consumers had been reduced from 15 to 10 per cent. This will benefit 13 lakh consumers while in urban areas, the duty proposed for consumption of more than 40 units is to be reduced from 30 to 20 per cent providing relief to 59 lakh consumers.

He said 82 lakh consumers which constitute 80 per cent of people in the state, will get a relief of Rs 159 crore.

The rate of electricity for consumers of residuary category has also been reduced from 30 to 25 per cent. There are 13 lakh consumers in this category, who will get a benefit of Rs 53 crore.

The electricity duty for the entertainment industry has been reduced from 30 to 25 per cent and This would provide a relief of Rs 11 crore to 18,000 consumers.

The budget has come as a disappointment for trade and industry as there is no mention of abolition of octroi.

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