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Gogoi's deficit budget has much tax relief

Sushanta Talukdar

Dearness Allowance increased for State Government employees

GUWAHATI: Assam Chief Minister Tarun Gogoi on Monday presented Rs.1995.48-crore deficit budget for the 2006-07 financial year. Barring an increase in tax on private sale of tea through the brokers of Guwahati Tea Auction Centre from the existing one per cent to two per cent, no new tax was proposed.

However, Mr Gogoi, who holds the Finance Portfolio, announced a host of tax relief measures in the maiden budget of the Congress-BPPF United Front coalition government.

The Chief Minister announced that the Government would undertake development of transportation, drainage, water supply scheme, solid waste management scheme for Guwahati city with an annual outlay of Rs. 3000 crore for the current financial year under the Jawaharlal Nehru National Urban Renewal Mission.

Mr. Gogoi proposed a reduction of tax on medicines from six per cent to four per cent and exemption of malaria drugs and mosquito nets from tax and exemption of specific goods used for providing state-of-the-art medical facilities from entry tax. He proposed setting up of a new medical college at Kokrajhar.

For the tea industry, Mr Gogoi proposed reduction of tax on "tea waste" from the existing 12.5 per cent to 4 per cent and a concession under the Agricultural Income Tax at the rate 50 paise per kg of tea exported through Inland Container Depot at Amingaon to promote export through the ICD. However, to curb private sale of tea in the tea auction centre and to strengthen the auction system he proposed to raise the rate of tax on private sale of tea from existing one per cent to two per cent.

The Chief Minister proposed exemption of mini cinema theaters, multiplexes and amusement parks from levy of entertainment tax for five years on fulfilment of certain conditions to be specified later.

On the social sphere, he proposed to exempt senior citizens above the age of 60 years and whose annual income is less than five lakh from payment of professional tax. In the handloom sector it was proposed to exempt fly shuttle loom from payment of value added tax which, Mr Gogoi said, would benefit the weavers as this loom is used by most of them. In the industrial front Mr Gogoi proposed exemption of all small and medium scale bamboo based industries from entry tax and VAT and reduction of entry tax on all plant and machinery for small scale industrial units to nominal rate of 0.25 pr cent from existing one per cent.

For the state government employees, the Chief Minister proposed to raise the rates of dearness allowance and dearness relief from 67 per cent to 71 per cent with effect from July 1, 2005 and again to 74 per cent with effect from January 1, 2006 bringing them at par with the Central government employees.

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Gogoi's deficit budget has much tax relief

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