Modhwadia’s suggestions on Gujarat Budget

Ahmedabad, 27 March, 2012

Participating in the discussion on demands of Finance department in Gujarat assembly today, Gujarat Congress President Arjun Modhwadia today suggested various corrections in the budget proposed by Finance minister Shri Vajubhai Vala.

Shri Modhwadia in his speech said that VAT revenue was Rs 9511 crore in year 2006-07 when VAT was introduced. Today this figure has reached Rs 25000 crore. Moreover the state has also added more revenue through Stamp Duty due to hike in Jantri. The state has also earned more from electricity duty due to hike in power tariff. Even after such increase in revenue through various sources, the state government has announced relief of just Rs 200 crore in its present budget.”

Modhwadia suggested corrections in government policy on collecting VAT on the products like wood, plywood, brass hardware, brass sanitary parts, detergent and powder, automobile spare-parts, mineral waters, medical equipments, ophthalmic equipments, maps, charts, glob, pesticides, chemical fertilizers, and paints.

Modhwadia said there’s 23% VAT and 3% surcharge on Petrol while 21% VAT and 2% surcharge on Diesel. One liter of Diesel costs Rs 1.70 more than neighboring Rajasthan and Maharashtra. Because of this the truckers shift to other states when it comes to refueling. The government thus losses the tax revenue anyway.

Modhwadia pointed out that there are number of units that have yet not paid VAT of more than Rs 1 crore. Collection of VAT of Rs 16527 crore is pending in such cases.