JAMMU : With an eye on forthcoming Lok Sabha and Assembly elections, the Jammu and Kashmir government in budget 2014-15 announced various incentives to the industry and unveiled a slew of social welfare schemes but imposed no new tax.
Presenting the Rs 43,543-crore, zero deficit budget in the Assembly, Finance Minister Abdul Rahim Rather also announced an insurance scheme for panchayat members and the regularisation of Rehbar-e-Zirat employees.
A provision of Rs 3 crore has been made for the purpose of marriage of orphan girls belonging to BPL families.
An amount of Rs 3.50 crore has been earmarked for Women Development Corporation to set up 100 Self Help Groups (SHG), comprising 44,000 women.
The coverage of ‘Beti Anmol Scheme’ has also been extended to all blocks from existing 97 blocks. The financial assistance to poor girls for higher education, too, has been increased from Rs 5,000 to Rs 10,000 under this scheme.
“It is big decesion we took today that there will no new tax in the budget we presented today. Not only there will be no tax hike, but the existing tax rates would also not be increased,” Rather told reporters after presenting his sixth budget.
“We have been appreciated for tax mobilisation …. Even CAG has appreciated us,” he said.
The Finance Minister said the tourism incentive package, which expires on December 31, 2014, shall be extended up to March, 2015 whereas stamp duty exemption on KCC has been increased from Rs 1.50 lakh to Rs 3 lakh. This concession shall also be available to the Artisan Credit Cards, he added.
“It is not that I haven’t imposed taxes this time in view of elections. If you look towards all my five budgets, I have never focused on imposing more taxes,” he said, adding that people cannot face the burden of more taxes.
The Finance Minister said both entry tax and toll tax on fertilisers, fungicides and weedicides, which are considered important agriculture inputs, have been exempted.
The horticulture sector, especially apple, pear, cherry has been brought under the ambit of the insurance cover concession granted to the industry.
“We presented an innovative, tax free and pro-people Budget in the Jammu and Kashmir Legislative Assembly”, he said. “The budget reflecting policies and programmes of the coalition government, aims at to give right direction to the state’s economic growth and development within the available resources,” he added.
In his 115-minute long speech, Rather said that despite limited financial resources and multiple problems confronting the state, every possible effort has been made to provide succor to various sections of the society, including trade, industry, tourism, farming community.
Rather said this is the second time in the legislative history of the state that six consecutive budgets were presented in a row by a government under a single leader.
Briefing about the tax concessions given to various sectors, Rather said that the agriculture sector has been made more or less tax free.
He said the tourism incentive package, which expires on December 31, 2014 shall be extended up to March, 2015.
Stamp duty exemption on insurance coverage of Kisan Credit Card holders has been increased from Rs 1.50 lakh to Rs 3 lakh. This concession shall also be available to the Artisan Credit Cards.
The Minister said VAT remission for the industry shall continue for another year whereas cashless system of VAT remission on purchase of raw material made of SICOP shall be adopted from the next year.
The budget also has an amnesty scheme under which penalty on VAT defaulters will be waived if they clear arrears. VAT of shawls has been cut to 5 per cent as well.
The debt liabilities state-run enterprises have also been
Waived.
“Hotel tariff tax exemption shall continue up to March, 2015,” Rather said.
While Rs 1.40 crore has been earmarked for helping HIV/ AIDs cases, the Cancer Treatment Management Fund gets Rs 2 crore.
Replying to queries about stipendiary mode of engagement and New Pension Scheme, the Finance Minister said that these initiatives are aimed at containing burgeoning non-plan expenditure besides creating more employment avenues for the educated un-employed youth.
The budget shows a total expenditure of Rs 43,543 crore with a capital component of Rs 10,595 crore.
Estimated tax revenue Rs 7,496 crore and share of central taxes is up to Rs 5,191 crore and central non-plan grant is Rs 2,096 crore. The Budget expects the revenue expenditure to touch Rs 32,948 crore.
Total receipts is estimated at Rs 43,543 crore. Revenue receipts are seen at Rs 39,221 crore, while capital receipts are projected at Rs 4,322 crore.
Rather said that the Government has improved the tax and VAT remittance resulting in more revenue.
He said VAT remittance during last five years increased from Rs 1,836 crore to estimated Rs 4,800 crore for the current fiscal, a cumulative increase of 161 per cent.
He said the total revenues (Tax and Non-Tax) have increased significantly from Rs 2,683 crore in 2008-09 to Rs 6,700 crore for the current year with an annual increase of 30 per cent. The non-tax revenue which stood at Rs 837 crore during 2008-09 has increased to Rs 2,160 crore during last year.
Buoyed by huge increase in revenue following return of “peace” in the state, Rather said “tax revenue in the state has witnessed 33 per cent increase during the span of last five years of the present coalition Government”.
He said the tax revenue which was just Rs 2,600 crore in 2009 increased to Rs 6,700 crore this year and is expected to increase to Rs 7,500 crore during the next fiscal.
Rather said this steep increase in tax revenue, without levying new taxes has been possible due to the better tax management and plugging of loopholes in tax collection system.
He said economic growth rate of the state is better compared to the national figure, adding that the Empowered Committee of the State Finance Ministers has appreciated the state for bringing improvements in Budget management and fiscal discipline. (AGENCIES)
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