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Tamil Nadu unveils people-friendly budget

M Karunanidhi, chief minister of India's Tamil Nadu state, today presented a soft budget, virtually imposing no additional taxes, giving sops to various segments of the society and showing an uncovered overall deficit of Rs 6.65 billion for the financial year 2000-2001.

The chief minister, who also holds the finance portfolio, said the deficit would be bridged by stepping up the various measures including collection of arrears, etcetera.

Presented under the shadow of the Tamil Nadu assembly elections due early next year, the budget gives sales tax cuts for mosaic tiles, ceramic tiles and marble stones of 20 per cent to 12 per cent.

Sales tax cuts for ceramic sanitary wares, washing machines and iron boxes from 16 per cent to 12 per cent, other electrical goods from 16 per cent to 8 per cent, bearings from 11 to 8 per cent, and electronic parts & accessories from 8 per cent to 4 per cent, were also announced.

Pasteurised milk, unbranded masala powder, paper bags envelopes are exempted from tax. Glass and glassware and metal polishers reduced from 16 per cent to 12 per cent, pagers, bleach liquids and ceramic bricks -- from 11 to 8 per cent, fried gram from 4 per cent to 2 per cent, and transformer oil from 16 per cent 4 per cent.

However, soft drinks in litres with a minimum retail price of Rs 29 will attract more sales tax from 12 per cent to 20 per cent.

The option to compound the tax on lottery tickets is withdrawn and it has been made compulsory for all lottery ticket dealers to pay tax only on a compounding basis.

Luxury taxes on lodging houses with a daily rent of Rs 1,000 and above will be raised from 20 per cent to 25 per cent.

The tax will remain the same for those with daily rent of Rs 500 to Rs 999, while the tax has been reduced from 20 per cent to 15 per cent in the case those charging rent between Rs 200 and Rs 499 a day.

Karunanidhi said local bodies would be permitted to levy entertainment tax on cable TV operators at rates not exceeding those prescribed in the state Entertainment Tax Act. Entertainment tax on new films payable by theatres has been reduced from 30 per cent to 25 per cent.

Sale tax on leasing of cinematography films has been withdrawn.

A limit of Rs 2 million for self-assessment by dealers has been increased to Rs 10 million and the Commercial Taxes Department on the basis of a certificate issued by a chartered accountant would accept the accounts of all dealers within this limit.

To cheer government servants, he announced an enhancement of upper limit of Rs 6,00,000 as house-building advance as against the existing Rs 400,000.

Karunanidhi, who announced special schemes for farmers, for the development of southern districts, welfare of handloom weavers, journalists, land-less agricultural labourers and other workers of unorganised sectors, also enhanced the monthly pension from Rs 150 to Rs 200 for fishermen, land-less agricultural labourers, widows, destitute women and the physically handicapped.

A separate directorate for tribal welfare would be formed to effectively implement schemes meant for their development.

He also announced a monthly assistance of Rs 100 to Rs 30,000 for girl students of backward classes and denotified communities studying in class VI in the coming year. A scheme to provide Rs 500 a year for girl students of these communities studying in classes III to V has been introduced in the current financial year.

The newly created Tamil Nadu Minorities Economic Development Corporation would obtain funds from the National Minorities Development Corporation and extend loans to minorities at a reasonable rate of interest, the chief minister added.

UNI

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