Gandhinagar, 24 February, 2012

As per the announcements made by Finance Minister Shri Vajubhai Vala in his today’s budget speech, heart treatment in Gujarat will become cheaper. The tax on instruments used for heart treatment are made tax free.

Gujarat Finance Minister Shri Vajubhai Vala in his budget speech today announced tax relief worth Rs 410 crore.

Shri Vala in his budget speech said, “With a view to lessen the tax burden on the people of the State, including children, women, elderly people, self employed artisans, each and every rural and urban household, students, educational institutes, hostels; and also at the same time to ensure prosperity and growth of trade and industry of the State, I now present the tax proposals for the year 2012-2013.”

Following is a list of tax relief announced by Shri Vala. Read on the narration in minister’s own words:

Hardware
Our Government is continuously making efforts to ensure that every citizen of the State owns his own house. A number of items are required to build a house including hardware of various metals such as steel, copper, brass, aluminum, etc. To provide financial relief to the citizens and to facilitate the people to build their own house, I propose to reduce the current rate of tax including additional tax from 15% to 5 % including additional tax on the following items used as fittings for doors, windows and furniture: Hinges-butt, tee, lock handle, furniture handle, furniture knob, drawer channel, furniture hinges, rivets, staples, panel pin, stud, chains of all kinds, all kinds of metal sections, slotted angles, shelves and accessories, rods, rails, channels and curtain fittings, handles, aldrops, window stay, gate hook, door stopper, brackets, clips, corners, washers, hooks and eyes, hangers, pelmet fittings, slidin door fittings, stoppers, suspenders, wire brushes, wire mesh, metal mesh, wire netting.

e-Bike (Battery operated two wheelers)
Importance of pollution free vehicles is increasing in the world. Battery operated vehicles are eco-friendly and are extensively used by girls. To promote the usage of such eco-friendly vehicles among the people, I propose to reduce the current rate of tax from 15% including additional tax to 5% including additional tax.

Medical implants (For heart disease)
At present, orthopaedic footwear, orthopaedic implants, splints, lens, hearing aids, artificial limbs, audio meter, used in the medical treatment of patients are tax free. However, some high cost implants used in treatment of heart diseases are taxable. To give financial relief to the heart patients and also to maintain consistency with tax free medical implants, I propose to fully exempt medical implants (for heart disease)from current rate of tax 5% including additional tax.

Blood bag
Human blood and its components used in the treatment of patients are at present tax free. Blood bag is used for transfer and storage of human blood. To give financial relief to the patients and to maintain consistency with the rate of tax, I propose to fully exempt blood bag from current rate of tax 5% including additional tax. Helmet Use of two wheelers has been increasing everyday in the State. It is necessary for the two wheeler users to wear helmet for protection against the accidents. To promote the usage of helmet for protection, I propose to reduce the rate of tax on helmet from 15% including additional tax to 5% including additional tax.

Mangalori Nalia
Nalia is used for construction of houses especially in the rural area of the State. State Government has therefore exempted desi nalia from tax. Use of mangalori nalia has also increased in construction of houses. To provide relief to the citizens of the State for construction of houses, I propose to fully exempt manglori nalia from current rate of tax 5% including additional tax.

Aquatic feed
Aquatic feed is food for fish and sea creatures. Cattle feed and poultry feed are at present exempted from tax. I therefore propose to fully exempt aquatic feed from current rate of tax 15% including additional tax.

Toys (except electronic and battery operated)
Children adore toys. Toys are important items of amusement and entertainment for the children. Use of toys also enhances intelligence of the children. Toys are manufactured mainly by small manufacturers. To promote the usage of toys among children for their overall development, I propose to fully exempt toys ( except electronic and battery operated toys) from current rate of tax 5% including additional tax.

Incense stick(agarbatti)
People of Gujarat are religious. Incense stick is used in pooja. Incense stick industry is a small scale cottage industry giving employment to poor people. Some items used in pooja such as pavitra, haar, kalagi, mugat, modh are at present tax free. To maintain consistency in rate of tax on all pooja items and also to encourage self employment, I propose to fully exempt incense stick(agarbatti) from current rate of tax 5% including additional tax.

Pooja Items (divo, ghantadi, poojathali, agarbatti stand, tarbhanu)
Some items used in pooja such as pavitra, haar, kalagi, mugat, modh are at present tax free whereas some other items such as divo, ghantadi, poojathali, agarbatti stand, tarbhanu used for pooja are taxable. To maintain consistency in the rate of tax on all pooja items, I propose to fully exempt divo, ghantadi, poojathali, agarbatti stand, tarbhanu from current rate of tax 15% including additional tax.

Prasad-Bhog
There is a tradition of distribution of prasad in some religious places on token payment. As, such transactions involve exchange of money and goods, such transactions may be construed to be taxable. To avoid such a situation, I propose to fully exempt prasad–bhog being distributed in religious place.

Loban and googal
Loban and googal are used in religious rituals and create pure and aromatic atmosphere. To maintain consistency in the rate of tax on all pooja items, I propose to fully exempt loban and googal from current rate of tax 5% including additional tax.

Thread used to fly kites, firki
Kite festival is celebrated with great joy in the State. Everybody including children, youth, women and elderly people participate in the celebration. This festival is also celebrated as international kite festival in the State every year in which kite fliers from a number of foreign countries also participate. Looking to the popularity of this festival and the fact that the kite is already tax free, I propose to fully exempt thread used to fly kites and firki from current rate of tax 5% including additional tax.

Dalia, chikki and revdi
Unbranded farsan made from besan, menda, wheat flour, bread, etc. is tax free and is used generally in day to day snacks. Dalia, chikki and revdi are also used as snacks in many parts of the State. Hence, I propose to fully exempt dalia, chikki and revdi from current rate of tax 5% including additional tax.

Yogurt, butter, cheese and paneer
Dairy industry in cooperative sector is well developed in the State. As a result, animal husbandry has also progressed. Many families in the rural areas of the State depend mainly upon animal husbandry. Milk, curd, buttermilk and lassi are tax free whereas ghee and chocolates are taxable at the rate of 5% including additional tax. To promote animal husbandry, I propose to reduce the rate of tax on yogurt, butter, cheese and paneer from current rate of tax 15% including additional tax to 5% including additional tax.

Sabudana (Tapioca)
Wheat, bajri, juvar, maize, all pulses, mamara and pauva used as food are tax free. Tapioca is a food item. Moreover, it is used for preparing farali item during fast. Hence, I propose to fully exempt sabudana (Tapioca) from current rate of tax 15% including additional tax.

Boria, buckle, ribbon, sari pin, broach, kajal for women
State Government has fully exempted all kinds of bangles, hair pin, combs, bindi, cumcum and sindur for women whereas boria, buckle, ribbon, sari pin, broach and kajal are taxable. To maintain consistency in the rate of tax, I propose to fully exempt boria, buckle, ribbon, sari pin, broach and kajal for women from current rate of tax 15% including additional tax.

Sanitary Napkins and diapers
Sanitary napkins and diapers are necessary for physical cleanliness and health for the girls, women, children and old people. To promote the usage of these items, I propose to reduce the rate of tax on sanitary napkins and diapers from current rate of tax 15% including additional tax to 5% including additional tax.

Glass bead
Textile industry is well developed in the State. Also the related ancillary industry of handicraft on saris, dress materials, kurta, jhabha, etc. is well developed. Glass beads are useful for decorating handicrafts articles. At present handicrafts articles are fully exempt from tax. Hence, I propose to fully exempt glass beads from current rate of tax 5% including additional tax.

Tools meant for tailor and barber (Except shaving blade)
At present, tools meant for self employed carpenter and blacksmith are taxable at the rate of 5% including additional tax. To maintain the consistency with the rate of tax prevailing on tools meant for carpenter and blacksmith, I propose to reduce the current rate of tax from 15% including additional tax to 5% including additional tax on the tools meant for tailor and barber engaged in self employment.

As a result of reduction in the rate of tax and the exemption from tax on the items mentioned above, the people of the State would get a huge relief of ` 200 crore.

Stamp Duty
At present, about two lakhs Self Help Groups/ Sakhi Mandals are functioning in the State. State Government has given exemption from stamp duty on the instruments executed by the Self Help Groups/ Sakhi Mandals for securing loan/borrowings not exceeding ` one lakh. With a view to ensure that the women of the State are socially and economically empowered through the self employment activities of Self Help Groups/ Sakhi Mandals, I propose to increase the limit for stamp duty exemption on the instruments executed by the Self Help Groups/ Sakhi Mandals for securing loan/borrowings upto ` two lakhs. As a result of increase in the stamp duty exemption limit, about 25 lakh members of the Self Help Groups/ Sakhi Mandals will get relief of about ` 10 crores.

Electricity Duty
State Government has created robust infrastructure facilities to ensure availability of quality power to the people of the State. The efforts of the State in the power sector have led to overall prosperity and substantial improvement in the physical amenities of the people. Our Government is continuously working for the availability of quality power at reasonable prices to the people of Gujarat.

There are about one crore residential electricity consumers in the rural and urban areas of the State including educational institutions. With a view to ensure that the electricity duty burden is lessened for every household in the rural and urban areas of the State, for every family, for every student, for every educational institute and hostels; and to ensure overall prosperity for the people of the State, I propose to reduce the applicable rate of electricity duty in respect of residence and education categories by 25%. As a result of this reduction in the rate of electricity duty, people of the State will get huge relief to the tune of `200 crores.

From a surplus budget of estimated Rs 727.22 crore, these proposed relief in taxes worth Rs 410 crore which include relief worth Rs 200 crore in Value Added Tax, Rs 10 crore in Stamp Duty and Rs 200 crore in Electricity Duty are made. Thus the estimated overall surplus comes to Rs 317.22 crore.