Budget 2017: Alcohol, lottery to cost more
On the Goods and Services Tax (GST), the government claimed that it is ready for the implementation of GST.
Mumbai: The state government on Saturday increased taxes on alcohol and lottery, while abolishing Value Added Tax (VAT) on card swipe machines in its budget for the forthcoming financial year.
The budget also reduced the VAT on aviation turbine fuel for flights with regional connectivity from five per cent to one per cent.
The current VAT rate of 23.098 per cent on Maximum Retail Price (MRP) of country and foreign liquor has been increased to 25.93 per cent. Similarly, tax on weekly lottery has been increased from Rs 70,000 to Rs 1 lakh.
There are a total nine products or services on which taxes have been given concessions. Important among these, the VAT on aviation turbine fuel for flights under the regional connectivity scheme has been reduced from five per cent to one per cent.
Similarly, VAT on card wipe machines for cashless transaction, previously 13.5 per cent, has been abolished. Post demonetisation, the government has been emphasising the usage of cashless modes of payment and charges on swipe machines have been a deterrent in this case.
Apart from this, the government continued the exemption of VAT on Solapuri chaddar and towels. VAT exemption will also continue to essential commodities like rice, wheat, pulses and its flour and also turmeric, chillies, tamarind, jaggery, cocunut, coriander seeds, fenugreek, parsley, papad and wet dates.
The government has decided to establish three new benches of Maharashtra Sales Tax Tribunal, and has also decided that VAT dues can be recovered from directors of private companies.
On the Goods and Services Tax (GST), the government claimed that it is ready for the implementation of GST. The Centre will give compensation under GST in place of Mumbai’s octroi and local body tax.