Gold jewellery to cost more; certain VAT rates raised in Karna

Posted By: Pti
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Bangalore, Feb 24 (PTI) The Karnataka government todayproposed to raise excise, motor vehicle tax and certain VATrates in the Rs 1,278.94-crore revenue surplus budget for2011-12 financial year.

Chief Minister B S Yeddyurappa, who also holds thefinance portfolio, proposed to increase rates of additionalexcise duty by 10 per cent to 20 per cent, and revised variousmotor vehicle tax rates and procedures, which are expected togenerate Rs 1,020 crore additional resources.

Value Added Tax (VAT) on jewellery and articles of goldand other noble metals, precious and semi-precious stones havebeen increased from one per cent to two per cent; VAT rate ongoods currently taxable at 13.5 per cent would go up to 14 percent.

Total receipts are expected to be Rs 83,729 crore for2011-12 -- Rs 66,313 crore of revenue receipts and Rs 17,416crore of capital receipts. Total expenditure is estimated tobe Rs 85,319 crore (revenue expenditure of Rs 65,034 crore andcapital expenditure of Rs 20,285 crore).

"During 2011-12, revenue surplus is estimated to be Rs1,279 crore. During 2011-12, fiscal deficit is expected to beRs 12,482 crore, which is 2.87 per cent of GSDP", Yeddyurappasaid presenting the budget in the Legislative Assembly.

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