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Chhattisgarh says no to VAT

RAIPUR, MARCH 1. No fresh taxes have been proposed in Chhattisgarh's budget for 2005-06, which projected a budgetary deficit of Rs 390.26 crore and remained non-commital on introduction of Value Added Tax (VAT) as states were yet to arrive at a consensus on it.

"Till now, there is no consensus among the States over introduction of VAT. Hence, we are neither revising the existing sales or entry tax structure nor imposing any fresh taxes,'' State Finance Minister Amar Agrawal said in his budget speech in the Vidhan Sabha today.

Presenting Dr Raman Singh government's second budget in the Assembly this afternoon, he said an empowered committee of finance ministers of different states had decided to evolve a consensus so as to introduce VAT with effect from April one this year. However, there is no consensus till date, he added.

In accordance with the promise made by the government, Mr Agrawal proposed to increase the limit for exemption of professional tax upto an annual income of Rs two lakh from the existing Rs 1.5 lakh. ``This will result in a revenue loss of about Rs 10 crore but would benefit more than 70,000 rpt 70,000 people,'' he added.

In order to mop up revenue, Mr Agrawal said, it has been proposed to impose a cess on land from where mining operations for coal, bauxite and iron ore were exploited.

Pointing out that the State exchequer was expected to get a revenue of about Rs 100 crore from this cess, the said Finance Minister said this would help mobilise resources for infrastructure development and environment protection in the respective areas.

The budget mainly focused on human resources development, social sectors to ensure food security and health security and education besides strengthening rural credit flow by providing Rs 18 crore for improving the financial condition of cooperative banks.

Mr Agrawal said an assistance of Rs 40 crore has been earmarked for streamlining the public distribution system. --UNI

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Chhattisgarh says no to VAT

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