Maharashtra Finance Minister Sudhir Mungantiwar has presented state budget 2017-18 on 18th March 2017.
The budget proposed to hike VAT rate on country and foreign liquor to 25.93% from 23.08% from April 2017.Meanwhile, tax on weekly lottery has been increased from Rs 70,000 to Rs 1 lakh. However, no new tax has been introduced in the budget.
In a bid to push industries across the state, the government has proposed to set aside Rs. 1,000 crore as incentives in terms of electricity rates, at Marathwada and Vidarbha. With an aim to promote cashless transactions, the state government has also brought down to zero, from the earlier 13%, the tax on card swiping machines to zero.
The budget also proposes to waive Purchase Tax of Rs 600 crores on Sugarcane purchased by Mills.
The state has allocated a sizable chunk for various infrastructure projects, including the development of airports and construction of metro corridors. Mungantiwar allocated Rs 7,000 crore to the public works department for better roads across state. The government also allocated Rs 700 crore for the construction of Metro lines in Mumbai, Pune and Nagpur. In a bid to develop infrastructure in the state, the finance minister announced setting up of a special purpose vehicle to raise Rs1 lakh crore.
While announcing the budget, GST will lead to increase in revenue of the state. With the introduction of Goods and services Act, octroi in Mumbai will go with introduction of Goods and Services Tax. It was further proposed to allocate Rs. ₹1000 crs for subsidy of power tariffs to encourage industrial units in Vidarbha and Marathwada.
The Minister stated that VAT exemption to Amsul along with exemption to essential commodities like rice, wheat, pulses and its flour and also turmeric, chillies, tamarind, jaggery, coconut, coriander seeds, fenugreek, parsley (suva), papad, wet dates will continue till the date of migration GST. Further, VAT on Geo Membrane required for farm pond reduced from 6% to 0%.VAT on Aviation Turbine Fuel for flights under the Regional Connectivity Scheme reduced from 5% to 1%.VAT on Gas and Electric Incinerators reduced from 13.5% to 0%.
The budget further provided for establishment of three new benches of Maharashtra Sales Tax Tribunal probably in Pune, Kolhapur and Nagpur. The budget mandates payment of 15% of VAT demand subject to maximum payment of Rs.15 crore, for the purpose of granting stay of demand till the disposal of appeal. It was further provided that VAT dues can be recovered from the Directors of private company. Now company and Directors of company will be jointly and severally liable for all the defaults of the company.
As per the budget, Profession Tax assessment for unregistered period reduced from eight years to four years.Profession Tax responsibility of an agent on the organization appointing the agent. Principal shall be liable for recovery for default of the agent.
