No new tax, no tax hike in Gujarat budget 2024-25; Two reliefs announced

Gandhinagar: Finance minister Kanubhai Desai today in his budget presented for financial year 2024-25 didn’t announce any tax hike. He announced two reliefs to citizens.

He said, the members of the registered cooperative credit society who take loans up to Rs. 50,000 will not need to pay stamp duty anymore. He said around 9 lakh people will get relief worth Rs. 54 crore due to this decision. He said such loans are taken by those who belong to middle class and low-income groups. This relief will result in more purchase capacity for them.

He said – ‘Members of registered cooperative credit societies, availing loans
of more than ₹5000 pay a stamp duty of ₹300 for the articles of agreement
and ₹300 for surety, totaling ₹600 under prevailing rates. This type of
small loan is generally availed by low and middle income group of people
for their businesses, employment or for the requirements in inputs for
agriculture.

The government has decided to waive this stamp duty in case of
members of such registered cooperative credit societies availing loans up
to a limit of ₹50 thousand. This decision will extend a relief of
approximately ₹54 crores to around 9 lakh members. Any increase in the
purchasing power of our lower and middle income groups will serve to
increase aggregate demand and boost economic activity and employment
thereby leading to the realisation of an Aatma Nirbhar Gujarat, as part
of the Hon’ble Prime Minister’s vision of an Aatma Nirbhar Bharat.’

The Finance Minister also announced relief for those who would send their vehicle older than 8 years for scrapping to registered vehicle scrappers. Desai said the vehicle owners paying recuring motor vehicle tax, if send their vehicle, older than 8 years to registered vehicle scrapper, will get benefit of waiver of pending motor vehicle tax, interest, fine under Motor Vehicle Act. He said this ‘maafi yojana’ will be effective for one year. He said around 52,000 vehicle owners will get  relief worth Rs. 700 crore due to this and they shall buy modern technology vehicles, resulting in to revenue for the State government.

He said – ‘The vehicle scrapping policy was announced in the year 2021 by
the Hon’ble Prime Minister with a view to creating a strong ecosystem
for a circular economy with green growth. The main objective was to
prevent the damage caused to the environment due to vehicular pollution,
reduce road accidents due to vehicle defects and encourage people to buy
more fuel efficient and environment friendly vehicles. In order to achieve
this objective I announce an amnesty scheme for one year to waive off all
liabilities of Motor Vehicle Tax, interest, penalty and any challans under
Motor Vehicle Act due on such vehicles, including outstanding
compounding fees on condition that, vehicle owners within the recurring
tax structure pass on their more than 8 years old vehicles for scrapping.’

“This decision will provide tax relief of around ₹700 crores to
approximately 52,000 vehicle owners. This will also incentivise such
vehicle owners to buy new more environment friendly vehicles and will
contribute to an increase in the tax revenue of the government.” he added.

Desai further said, “I propose no change in the existing tax rates and no new taxes
are proposed to be levied in this budget to further accelerate growth
of the state.”

DeshGujarat