Gujarat Budget: Rs. 20 crore relief in tax, Rs 80 crore new tax on technical textile

Gandhinagar, DeshGujarat

Finance Minister Saurabh Patel in his budget speech today gave Rs. 20 crore relief of tax on imitation jewellery, Isabgol and Isabgol bhusi, Aviation Turbine Fuel(for cities other than Ahmedabad and Vadodara) and oral contraceptive pills. He imposed new tax on technical textile which would give revenue ot Rs. 80 crore to government.

“The government has estimated overall surplus of Rs. 184.95 crores. Proposed reduction/relief in the tax revenue is to the extent of Rs. 20 crore while proposed increase in the tax revenue to the extent of Rs. 80 crores,” reads Finance Minister’s budget speech.

Tax on imitation jewelery is 5% at present. It will be just 1% in new budget year.

In another announcement, 5% tax on oral contraceptive pills has been totally waived.

On Isabgol and Isabgol bhusi, the Finance Minister’s speech reads:”New units have come up in the neighboring state due to full tax exemption. Proposal to fully exempt in order to retain/sustain the foreign exchange and the agree processing activities involved in this industry. Full exemption from the current rate of tax 5% including additional tax. Approximate reduction in the tax revenue to the extent of Rs. 7 crores.”

On cut on ATF duty, Finance Minister said: “In order that the other cities of the state having airports also get good air connectivity, proposal to reduce the rate of tax on aviation turbine fuel(ATF) from current rate of tax 30%(for duty paid ATF) and 38%(for bonded ATF) to 5% when sold from the cities other than Ahmedabad and Vadodara for scheduled commercial airlines service flights. Approximate reduction in the tax revenue to the extent of Rs. 6 crores.”

On relief to cotton roving, the Finance Minister in his speech said: “In order to encourage usage of Khadi and to avoid the tax burden on purchase of cotton roving, proposal to give refund the tax paid on current rate of tax 5% including additional tax on the cotton roving purchased for manufacture of above products by the Khadi Gramodhyog Board approved institutes.Approximate reduction in the tax revenue to the extent of Rs. 1 crore.”

On 5% new tax imposed on techical textile, Finance Minister in his speech said: “Technical textile is used in industries like building construction, civil engineering, furniture, household textiles, floor coverings, automobiles, shipping, railways, packaging.”

“The raw material normally used in the manufacture of technical textile are artificial materials like plastic, nylon, resin, rubber, metal etc.”

“There’s significant value addition in this product. It is necessary to bring this industry in the tax net.”

“Proposal to impose tax at the rates 5% including additional tax on technical textile.”

“Tax revenue of the state is estimated to be increased approximately to the extent of Rs. 80 crores.”

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