Acquiring land and residential property will be costly in MP
Bhopal: Madhya Pradesh Finance Minister Jayant Malaiya today presented in the State Assembly a Rs.158000 crore budget, the third in a row, for the financial year 2016-17. The fiscal deficit in the next financial year is estimated as Rs. 118 crore.
The meet the fiscal deficit gap in terms of revenue and expenditure, the Finance Minister has proposed a hike in Value Added Tax (VAT).
Laying emphasis on the State BJP Government’s commitment to make agriculture a paying proposition, the Finance Minister told the House that 38 agriculture equipment are already exempted from tax. Similarly now it has been decided to also exempt organic pesticides and automatic milking machines from tax.
The 5 per cent VAT on cars and rickshaws that run on batteries is being removed and these were being made tax free in order to combat the problem of pollution. There will also be no tax on bags made of biodegradable material.
The central sales tax on deoiled cattle feed is now being proposed to be zero rated.
Further it has been proposed to lower the VAT to 4 per cent for cars being sold from the Canteen store to defence personnel. Similarly the Border Security Force (BSF) personnel will pay the same slab of tax as the Canteen store department when they buy material from the Central Police Canteen.
To benefit the transport sector, the VAT on Heavy Duty Vehicles with a capacity of 12000 kg and above is proposed to be reduced from 15 to 14 per cent.
The Vat is also proposed to be reduced from 14 per cent to 5 per cent on Soy milk, dialysis machines and consumables, bio-fuel based smoke-free stoves, gas stoves and induction cook top parts and accessories.
In order to mobilise resources for development the VAT is being raised on several items.
To meet the environment conservation goal, VAT on plastic bags, plastic cups, tumblers, plates, bowls, fork and knives, spoons, and polythene bags is being raised from 5 per cent to 14 per cent.
There is also a proposal to levy 5 per cent VAT on bicycles above Rs. 10000. On glass mirrors and geysers that run on gas, VAT is being raised from 5 per cent to 14 per cent.
Under the Entry Tax Act, the concessions given in 2015-16 will be continued during the next fiscal.
For registered traders, who import natural gas from other states and carry natural gas through alternate means and not through pipelines to other States will get concession from the notified higher rate under Section 4-A of the Entry Tax Act.
Central Sales tax
The concessions announced under the Central Sales tax Act for the 2015-16 fiscal will continue during the next fiscal.
Registration and Stamp Duty
Under the Chief Minister’s housing scheme for the rural areas, the beneficiaries will be exempted from paying stamp duty.
For ease of doing business and protecting the property related rights of the common people, the Government proposes to grant exemption from going to the sub-registrar’s office. In the first phase, transfer under mortgage, lease surrender and registry of documents under the apartments Act will be notified .
It is also proposed to do away with the mandatory requirement of producing two witnesses at the time of registry as even the Adhar card can be used online to verify identity.
Purchasing land or residential property will now become costly in Madhya Pradesh as the stamp duty on registry of property documents which was now calculated on the basis of 0.125 per cent of the property value is proposed to be raised to .5 per cent. The Government wants to use the additional income that would be generated through this hike on creating jobs in the rural areas.