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Vasundhara slaps tax on corporate-run retail stores

Photo: Gopal Sunger

The final budget: Chief Minister Vasundhara Raje coming to present the State Budget.

JAIPUR: The BJP Government in Rajasthan on Monday presented its fifth and final Budget that had plenty of “small trader”-friendly proposals, including a four per cent tax on fruits and vegetables sold by corporate-run food stores.

Tabling the Budget, with a Plan expenditure size of Rs.15,248 crore for 2008-09, Chief Minister Vasundhara Raje told the Assembly that implements like coal-fired press, wire brush and small construction tools sold by street vendors would be exempt from taxes.

She also proposed to raise the minimum wages for unskilled labourers to Rs.100 a day from Rs.73, semi-skilled to Rs.107 from Rs.77, and skilled to Rs.115 from Rs.81.

But by far the most populist of her proposals was the four per cent tax on vegetables and fruits sold by company-run food retail stores (such as those operated by Reliance and Spencer’s). The levy is aimed at protecting small vendors who have been protesting against the entry of industrial houses in the food-products retailing space.

The Budget also proposed several sops for the people, mainly farmers, Scheduled Castes and Scheduled Tribes, women and students, besides the small and medium traders. Ms. Raje also proposed a customised incentive package on a first-come-first-served basis to three corporate houses that invest Rs.500 crore in districts that are relatively untouched by industrial activity.

In her speech that lasted two hours and fifteen minutes, the Chief Minister said that through better management the fiscal deficit was expected to be brought down to Rs.5,266 crore in 2008-09 from Rs.5,420 crore last year.

The Chief Minister did not announce any special package for Gujjars contrary to her promise to the community last year.

However, Ms. Raje proposed to enhance the women’s quota in Panchayati Raj institutions from 33 per cent to 50 per cent.

She said it had become necessary to raise the reservation for women due to an increase in their population in villages.

Regarding the Gujjar issue, Ms. Raje clarified that a high-power special package committee had not submitted its report yet.

“As soon as the report is submitted, it would be adopted,” she said.

Later she told a press conference that her government was on a strong footing and could initiate a number of projects on its own.

“I presented my Budget before the Union Budget because I want to begin early and complete the Budget task at the earliest,” the ChiefMinister said. - PTI

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Vasundhara slaps tax on corporate-run retail stores

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