Maharashtra Budget 2022: State angling for first $1 trillion tag

Maharashtra Budget 2022: State angling for first $1 trillion tag

Presenting the budget in the backdrop of the revival of the state economy and also the impact of the Russia-Ukraine war, Maharashtra Deputy Chief Minister Ajit Pawar announced a bunch of tax concession proposals to help the ordinary citizen, industry and business.

Sanjay JogUpdated: Friday, March 11, 2022, 11:30 PM IST
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Maharashtra Budget 2022: State angling for first $1 trillion tag | Sanjay Jog

Buoyed by the 12.1 per cent growth in 2021-22 after weathering the Covid crisis, other natural calamities and the slowdown, the Maharashtra government presented the annual budget for 2022-23 on Friday with a resolve to make the state the first in the country with a $1 trillion economy in three years with the allocation of Rs 4 lakh crore towards the ‘panchasutri of development’.

Presenting the budget in the backdrop of the revival of the state economy and also the impact of the Russia-Ukraine war, Maharashtra Deputy Chief Minister Ajit Pawar announced a bunch of tax concession proposals to help the ordinary citizen, industry and business.

This has been done by reducing the VAT on natural gas from 13.5 per cent to 3 per cent, which will make domestic piped and compressed natural gas cheaper, bringing much needed relief to households and vehicle owners. This is also aimed at promoting the use of environmentally friendly natural gas.

With a view to incentivize the construction business, the time period for adjustment of the stamp duty paid on the earlier deed against the subsequent deed has been increased from one year to three years, as per the provision of article 5 (g-a) (ii) of Maharashtra Stamp Act.

Pawar also proposed a stamp duty exemption on gift deeds without consideration to corporations and institutions. Donors transferring land without consideration to corporations and local self-governing bodies under the jurisdiction of State of Maharashtra free of cost, are exempt from the current stamp duty of 3 per cent on the gift deed or the 5 per cent on sale deed under Section 9 of the Maharashtra Stamp Act. As a result, the state may incur a revenue reduction of about Rs 21 crore.

The FM has also proposed an amnesty scheme under the Stamp Act from April 1, 2022, to November 30, 2022, for pending penalties. Because of this Amnesty Scheme 2022, there will be a shortfall of Rs 1,500 crore in outstanding penalties.

To give impetus to the gold and silver jewellery industry, refineries and exports and to generate employment in the state and curb tax evasion, it has been proposed to waive the current stamp duty of 0.1 per cent levied under the Maharashtra Stamp Act on gold-silver delivery order documents imported into Maharashtra. With this concession, there will be a revenue shortfall of around Rs 100 crore.

In order to promote water transport, the tax levied by the Maharashtra Maritime Board on passengers as well as pets, vehicles, goods etc. travelling by ferries and Ro-Ro boats operating on the waterways newly launched from January 1, 2022, under its jurisdiction is being waived for three years.

GST department amnesty scheme

The government has proposed an amnesty scheme titled ‘Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Scheme-2022’. This scheme is applicable to concessions on various taxes levied by the sales tax department before the introduction of the GST Act and the duration of this amnesty scheme will be from April 1, 2022, to September 30, 2022.

Arrears up to Rs 10,000 or less per year as per any statutory order passed under the various tax laws implemented by the department will be waived. This will bring relief in almost one lakh cases. Dealers with arrears up to Rs 10 lakh or less as raised in the statutory orders as on April 1, 2022, will have the option of paying a lump sum of 20 per cent of the total arrears, instead of calculating the amounts payable on account of undisputed tax, disputed tax, interest, penalty as per the proportions provided in the scheme. On the payment of a lump sum amount of 20 per cent, a waiver will be granted on the remaining 80 per cent of the arrears. This will provide relief in almost two lakh twenty thousand cases.

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