Maharashtra DCM Ajit Pawar in the annual budget for 2021-22 has estimated tax revenue of Rs 2,18,263 crore. This includes revised estimates of Rs 1,84,519 crore on account of the Goods and Services Tax (GST), Value Added Tax (VAT), Central Sales Tax (CST), Profession Tax (PT) and other important taxes.
‘’Considering the Current economic slowdown in the National and the State economy, it will be not easy to achieve the revised revenue estimates as above. However, the Government will make full efforts to achieve the revised target in revenue collection,’’ said Pawar while presenting the second budget of the Maha Vikas Aghadi government here on Monday in the state assembly.
The Global pandemic of “Covid-19” has affected the State economy unprecedentedly in the last year. As a result industry, service and other sectors of the State have been severely impacted. However despite slowdown in the economy, keeping women as a focal point, Pawar has proposed concession in stamp duty for property registration made in the name of women. ‘’On the International Women’s Day, I propose concession in Stamp Duty of 1 Percent over the prevailing rate exclusively to Women, provided the transfer of house property or registration of sale deed is in the name of woman or women only,’’ he said.
Due to the above tax concession, there will be revenue shortfall of around Rs 1,000 crore.
In addition, Pawar has proposed an increase in State Excise Duty on Liquor.
It is decided to classify country liquor into two separate categories as branded and non-branded country liquor, while increasing State Excise Duty to Rs 220 percent of manufacturing cost or Rs 187 per proof litre whichever is high on branded country liquor only. Due to this, the State is estimated to get additional revenue of Rs 800 crore.
Further, Pawar has proposed to increase the rate of Value Added Tax (VAT) on the sale of liquor as prescribed in Schedule-B of Value Added Tax Act from the existing 60 percent to 65 percent. He has also propose to increase the rate of Value Added Tax (VAT) on the sale of liquor as prescribed in Section 41 (5) of Value Added Tax Act from the existing 35 percent to 40 percent. ‘’Due to this, the State is estimated to get additional revenue of Rs 1,000 crore,’’ he said.
