Guwahati: The Assam government today presented a Rs 2,819.23-crore deficit budget for 2008-09, seeking to abolish VAT on essential commodities, introduce gender budgeting and make alcohol and tobacco products costly.

Presenting the budget, Chief Minister Tarun Gogoi, who is also the finance minister, said VAT on rice, pulses, wheat, flour, semolina (suji), besan, onion and potato would be removed.

Gogoi also brought down the rate of VAT on unbranded soya nuggets, transformers, jute cloth and other jute products from 12.5 per cent to 4 per cent.

To encourage export of tea from Assam, the existing deduction of 50 paise per kg from agricultural income tax was doubled to Re one per kg, while central sales tax for tea sold through Gauhati Tea Auction Centre was cut to 0.25 per cent.

To partially compensate the loss in revenue due to rate cuts, Gogoi proposed raise in tax on foreign liquor and country spirit from 24 per cent to 27 per cent.

A cess of three per cent was also introduced on sale of tobacco products in the state, proposing to utilise the amount mopped up from this for the development of health infrastructure and services through a specially created fund.

Direct to Home Service (DTH) connections would now be costlier by Rs 25 with the imposition of an entertainment tax per connection per month.

The budget introduced gender budgeting for the first time in the state with 100 per cent funds earmarked for the benefit of the women, the chief minister said.
Source : PTI