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New taxes proposed in Karnataka budget

Fresh taxes to yield Rs 3.60 billion were proposed in the Rs 2.9-billion deficit budget for 2000-01 presented in the Karnataka assembly here today.

Presenting his maiden budget chief minister of India's Karnataka state, S M Krishna, also announced several new schemes to benefit the rural sector.

While commercial taxes and excise accounted for Rs 1 billion each of the new tax burden, Krishna also announced a new levy to improve infrastructure to net Rs 1.2 billion. The information technology savvy chief minister also announced a five-year tax stability on the knowledge industry.

While goods such as electrical appliances, beer and liquor, tape recorders, batteries, mineral water, granite, confectionery items and readymade cement concrete would be dearer, Krishna also announced several tax concessions on agricultural implements and chemical fertilisers in a bid to boost the rural economy.

Krishna also announced a ten-point focus to improve the state, while envisaging a seven to eight per cent growth rate for the next decade from the existing 5.8 per cent.

The chief minister said he proposed to cover the deficit through expenditure control and expected buoyancy of taxes during the year. He also sought a vote-on-account till July.

UNI

Business

Karnataka