Drought surcharge imposed in Maharashtra to mop up funds for farmers

State will raise Rs 1,600 crore out of Rs 3,000 crore being spent in Marathawada and Vidarbha regions

GN Bureau | October 1, 2015


#Maharashtra   #drought   #farmers   #marathawada   #vidarbha   #interest waiver  

The Maharashtra government has introduced a 'drought surcharge' on a host of items ranging from fuel and liquor to cigarettes and jewellery to raise Rs 1,600 crore. The new taxes came into effect from Wednesday midnight.

The state has to bear a burden of more than Rs 3,330 crore. This includes Rs 1,072 crore for loss of crop, Rs 421 crore compensation to farmers hit by unseasonal rain, Rs 20 crore for repair of their homes, Rs 690 crore for crop insurance, Rs 60 crore for interest waiver on farmers' loans, Rs 117 crore for restructuring of loans, and Rs 950 crore for distribution of wheat and rice at Rs 2 and Rs 3 in 14 districts of drought-affected areas of Marathawada and Vidarbha under the food security bill scheme.

Maharashtra finance minister Sudhir Mungantiwar said the new tax system will be in place for the next five months till February-end, after which the government will rationalize it.

A surcharge of Rs 2 per litre would be levied on petrol and diesel in Mumbai. Its impact will be lower in rural areas as the local body tax (LBT) was scrapped in the remaining 27 corporations across the state on Wednesday. Sales tax on liquor, cigarettes and aerated soft drinks will be hiked by 5%, and VAT on gold, diamonds and jewellery by 0.2%.

"In the past six months, the state government has taken a decision for the welfare of the common man, especially distressed farmers. But following the hike in taxes, the government will be able to raise Rs 1,600 crore. People of Maharashtra are sensible enough to bear the hike for the sake of farmers," said Mungantiwar.

The state had scrapped LBT for traders with less than Rs 50 crore turnover from August 1, 2015. "This had come as a relief as prices of most goods reduced. No LBT was levied on liquor, cigarettes and soft drinks. We have, therefore, decided to increase the sales tax by 5% on these items. After five months, during the budget session, we will rationalize the tax system and come up with a long-term policy on the Goods and Services Tax (GST)," Mungantiwar added.

Comments

 

Other News

Aiming disinvestment, ITDC properties to be transferred

The central government has agreed to transfer Hotel Jaipur Ashok at Jaipur and Lalitha Mahal Palace Hotel at Mysore of India Tourism Development Corporation Ltd (ITDC) to Rajasthan and Karnataka governments, respectively and disinvest ITDC shares in Donyi Polo Ashok Hotel Corporation. The ca

Rohingyas in India are illegal immigrants: Rajnath Singh

Rohingya people who have entered India are not refugees but illegal immigrants, home minister Rajnath Singh has said, as they have not followed the due procedure to acquire a refugee status. “By deporting Rohingyas from India, we are not violating any international law. India is not a

In Yogi regime, police return to notorious past of encounter killings

Lucknow, September 15 The Uttar Pradesh Police releases official data on crime control under the new dispensation of Chief Minister Yogi Adityanath. Reveals that in 180 days of the new government, 420 encounters have taken place leading to the elimination of 15 supposedl

India-Africa relations: A peep into energy ties

Since the dawn of this century, owing to their growing interdependence, India’s ties with the African states have gradually been acquiring significance in a rapidly globalising world. Such interdependence is manifesting itself quite clearly in economic, developmental and politico-strategic spheres of

Urban planning: In the right direction?

Over the last decade, Chennai has been witnessing an unprecedented increase in urban population and a large expansion of industrial areas in its suburban regions. This expansion has largely been unorganised and haphazard. In order to regulate growth and make it uniform, the Tamil Nadu government has decide

Incumbents` loss is Jio`s gain

The telecom regulator has opted for Bill and Keep, BAK, model for interconnection usage charges, that one operator pays to the other for call termination. At one stroke, the telecom regulatory authority of India (TRAI) regulation on interconnection has facilitated savings of Rs 5,000 crore to Reliance Jio



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter