Tax exemption on foodgrains, pulses to continue

Bangalore, Mar 16 (UNI) Tax exemption on rice, paddy and wheat will continue for one more year, Karnataka Deputy Chief Minister B S Yediyurappa announced today.

Presenting the budget in the Assembly, Mr Yediyurappa, who also holds the Finance portfolio, said the exemption would also continue for products of rice and wheat, and pulses to help the common man.

Tax on rubber tyres and tubes of tractors, software licenses and used motor vehicles would be reduced from 12.5 per cent to four per cent. A 20 per cent tax would be levied on molasses, ethyl alcohol, denatured spirit and rectified spirit on which levy of excise duty had legal disputes, he said.

He also gave permission for issue of self declaration towards purchase of diesel at concessional tax of four per cent for captive power generation.

Mr Yediyurappa announced that tax exemption given to those running educational institutions and tutorials had been withdrawn.

Entertainment tax payable by multi-system operators was reduced from ten per cent to six per cent and tax payable by owners of amusement parks from 20 per cent to ten per cent. To lend a helping hand to the medium of theatre, facing tough times due to lack of patronage, entertainment tax levied on admission to dramas had been exempted.

He added an additional revenue of Rs 75 crore would be mobilised through the transport department by enhancing tax on various classes of vehicles.

UNI