In this article we have compiled highlights of Maharashtra Budget 2017-18 alongwith Budget Speech including the changes on Tax Front in GST, Formation of additional benches of Maharashtra Sales Tax Tribunal, Maharashtra Value Added Tax Act, Profession Tax Act, Entry Tax Act, Sugarcane Purchase Tax, Value Added Tax, Lottery tax etc.

Budget Highlights

HIGHLIGHTS OF THE BUDGET SPEECH DATED 18Th MARCH, 2017 BY HONOURABLE MINISTER (FINANCE) SHRI SUDHIR MUNGANTIWAR

PART I

  • Change in budget presentation-Merger of Plan and Non-Plan
  • Agricuture Centric Budget.
  • 8233 Crore provision to Water Resoure Department.
  • Micro Irrigation Project for Yavatmal and Werdha District using Istrail Technology provision Rs. 100 Crore.
  • Substantial provision of Rs. 979 Crore to conpencent backlog of Agri Pumps and inplementation of Infrastructure Plan-2.
  • 200 Crore got Pilot poject of group furming to improce agri production.
  • World Bank porject of Rs. 400 Crore ” Nanaji Deshmukh Krishi Sanjivani ” for Marathwada and Vidharbha.
  • Government Comitade to work to make farmers debt free.
  • Training to 1 Lakh Twenty two thousund youths under “Pramod Mahajan Skill Development Programme ”.
  • Mason traing for 10 Thousund masons.
  • 200 Cr. for establishment Sainik School at Chandrapur.
  • 7000 Cr. for Roads
  • 1,884 Cr. for Sanjay Gandhi Yojana.
  • First corporate major Port at Vadhavan District Palghar.
  • 525 Cr. for Solar Energy Project.
  • 2,650 Cr. to stat Industries in backward areas.
  • 1,870 Cr. to basic facilities in urban area.
  • 1,605 Cr. for Health and Environment programmes in Urban area.
  • 7,230 Cr. for Schedule Castes welfare.
  • 6,754 Cr. for Schedule Tribes welfare.
  • Rs. 200 Cr. each to Annasaheb Patil and other Bakward Class Corporation and Rs. 50 Cr. to Shamrao Pege Corporation.
  • 310.57 Cr. for nutrition programme of Anganwadi children.
  • 679.53 Cr. to strengthening of judiciary.
  • Establishment of ” Mahainfra ” Special purpose vehicle for Infrastructure project.
  • Establishment of Marathwada Water Grid to beat drought
  • 1100 Cr. for Maharashtra Suwarnjaunti Nagarothan.
  • 1600 Cr. for Smart City.
  • 1800 Cr. for Amrut Schime.
  • 1605 Cr. for Swatch Bharat.
  • 710 Cr. for Mumbai Pune and Nagpur Metros.
  • Upgradation of Cancer Hosptal at Aurangabad as State Level Cancer Research Centre.
  • Cancer detection mechins at 253 health institues.
  • 31 City Scan Machines to be established in selected 31 Hospital.
  • To increase the source of Rajeev Gandhi Jeevandayi Helth Meshion as Mahatma Phule Jan Arogya Yojana.
  • Laboratory at Shindhudurga for treating Mokey Fever.
  • Chain Link Fencing to reduce human-wild animal conflict.
  • 332 Cr. for Minority Department.
  • Increase in allocation for Woman’s commission.
  • Computerization of Public Distribution System.
  • 3 Cr. Every Year for Nirmalwari’
  • To start Maharashtra School of Drama of the lives of National School of Drama.

PART-II

(A) Tax Concessions

  1. Sugarcane Purchase Tax for the year 2016-17 exempted to give fair and remunerative price to the farmers. The condition regarding export of sugar for exemption for the year 2015-16 is removed.
  2. VAT exemption to Amsul alongwith exemption to essential commodities like rice, wheat, pulses and its flour and also turmeric, chillies, tamarind, jaggery, coconut, coriander seeds, fenugreek, parsley (suva), papad, wet dates.
  3. VAT exemption on Solapuri chaddar and towels continues.
  4. VAT on Geo Membrane required for farm pond reduced from 6% to 0%.
  5. To examine the fertility of soil for farming, VAT on Soil Testing Kit reduced from 13.5% to 0%.
  6. VAT on Milk Testing Kit for checking adulteration of milk reduced from 13.5% to 0%.
  7. VAT on Aviation Turbine Fuel for flights under the Regional Connectivity Scheme reduced from 5% to 1%.
  8. VAT on Card Swipe Machine for cashless transactions reduced from 13.5% to 0%.
  9. VAT on Gas and Electric Incinerators reduced from 13.5% to 0%.

(B) Tax concessions to Industries

  1. VAT exemption on Sweet-Corn processing industry from 1st April 2005 to 31st March 2016.
  2. VAT exemption on Textile Processing industry from 8th April 2011 to 30th April 2012. Approximately 200 units would benefit.
  3. VAT exemption on Yarn Sizing and Warping industry from 1st April 2005 to 31st March 2016. Approximately 300 units would benefit.

(C) Increase in Taxes

  1. VAT rate of 23.08% on MRP of country and foreign liquor increases to 25.93%.
  2. Tax on weekly lottery increases from Rs.70,000 to Rs.1 lakh.

(D) Administrative changes

  1. Establishment of three new benches of Maharashtra Sales Tax Tribunal.
  2. VAT appeal 10% part payment necessary subject to maximum payment of Rs.15 cr.
  3. VAT dues can be recovered from the Directors of private company.
  4. Profession Tax assessment for unregistered period reduced from eight years to four years.
  5. Profession Tax responsibility of an agent on the organization appointing the agent.
  6. Review of fees, fine and court fee amounts under various Acts.

(E) GST

  1. State ready for the implementation of GST.
  2. Compensation under GST on the basis of 14% annual growth rate of revenue for the year 2015-16.
  3. Compensation under GST to be available for Mumbai’s Octroi and Local Body Tax.

BUDGET SPEECH

Part-I

Honourable Sir,

It is now two years since a development oriented government has been in existence in the state. I am submitting my third development oriented budget which is dedicated to the 12 crore people of Maharashtra.

The Jal and Bhoomipujan for the memorial of Chhatrapati Shivaji Maharaj Memorial in the Arabian sea close to Mumbai was completed on 24th December 2016 in the hands of honourable Prime Minister of India.

Our Government has taken a number of initiatives in many areas. Jalayukta Shivar Yojana, Pradhan Mantri Krishi SinchanYojana, Pradhan Mantri Peek Vima Yojana are some of the important programmes. Maharashtra continuous to be the leading state in industrial development and the Government has come out with a slew of policies for promoting development and attracting investment. A number of imaginative steps have been taken for upgrading the quality of school, higher and technical education. Smart city, the metros for Mumbai, Pune, Nagpur, Mihan project are some the initiatives for urban development. The Right to Services, Right to Information are now available online. Due to such measures, the growth rate of state has increased from 5.4% in 2014 to 9.4% in 2016-17. The growth rate of Maharashtra is two percent more than that of all India growth rate and we are expecting to touch double digit growth in future.

Agriculture & Allied Sector

About 50% of the population depend on agriculture, but agriculture contributes only 10.5% of the state GSDP. It is known that main challenge to agriculture is low productivity caused by various factors, including lack of irrigation and total

dependency on monsoons. The government is committed to increase the investment in agriculture and initiate a number of steps to provide for more irrigation, power, rural communication, processing and monitoring facilities, technology and credit. It thereby hopes to double the agriculture income by 2021.

Water Resources

1. A sum of Rs. 8233 crore is being allocated in 2017-18 for the Water Resources Department. As committed by me in the last two budgets, one hundred percent funds are released to the departments.

2. A sum of Rs. 2812 crore is being allocated for the project under Prime Ministers Krishi Sinchai Yojana, in 2017-18. It is expected that about 82,600 hectares will come under irrigation through these projects.

3. It has been decided to take up distribution of 7 TMC water in the next 4 years through the Krishna Marathwada project which is a boon for Marathwada. As it will not be possible to meet the cost of this project from available resources within the framework of Hon Governor’s formula, a sum of Rs. 250 crore has been kept outside the formula of allocation, with the permission of Hon. Governor. This critical project will help in irrigating 25,798 hectares and 8147 hectors in the drought prone districts of Osmanabad and Beed respectively. The project will also provide drinking water to 288 villages in 9 talukas.

Jalyukta Shivar

4. Jalayukta Shivar is the flagship programme of the State and it is conceptualised as a permanent solution to the recurring droughts. It is proposed to make 5000 villages drought resistant every year. So far Rs. 1600 crore has been spent under this scheme and about Rs. 246 crore of works has been implemented by public participation. A sum of Rs.1200 crore has been earmarked for Jalayukta Shivar in 2017-18. In addition, the funds available from District Plan and central schemes will be topped for the campaign.

Wells and form ponds

5. Under the Mahatma Gandhi NREGA 1,22,562 wells have been constructed since 2011-12, of which 59, 348 wells have been completed in last two years. A sum of Rs. 225 crore has been kept for wells and for taking up farm ponds ‘on demand’.

Micro Irrigation

6. It is the policy of this Government to bring maximum area under micro irrigation. it is propose bring in Israeli micro irrigation technology for full utilisation of the capacity of the Arvi Lift Irrigation project in Wardha district and in Bembla Project, Yavatmal. An amount ofRs.100 crore is being provided for this project in 2017-18.

7. There is a saving of 30-40% in water use by use of micro irrigation. It is proposed to bring maximum hectares now under sugarcane under micro irrigation. It is proposed to give subsidised interest for this purpose.

Agriculture Pumps

8. To provide electrification for agriculture pumps and to clear the backlog in eastern Vidharbha, and in other parts of the State an amount of Rs. 979.10 crore is being provided in 2017-18.

Interest Concession

9. An amount of Rs. 125.64 crore is earmarked under Dr. Panjabrao Deshmukh Interest Subsidy Scheme.

Marketing

10. Marketing Department is taking a number of steps to enable farmers get remunerative prices for their produce and double their income. The support includes providing godowns, grading of farm produce, strengthening competition through direct marketingof products and to establish Agro marketing Hub at various places of the state. The scope of Sant Shiromani Shri Savata Mali Weekly market Abhiyan will be widened and interest at subsidised rate will be provided to farmers who choose to take loans by pledging their farm produce in godowns.

Cold Van Scheme

11. There is now free market for sale of farm produce consequent to the repealing of APMC Act. A new scheme is proposed to be launched which will provide refrigerated vans to facilitate movement of farm products. Required funds will be made available for this purpose.

Cashewnut Processing

Necesssary fund will make available for the programme of cashewnut plantation, processing in Sindhudurg, Ratrnagiri, Raigad, Thane & Palghar districts of Kokan.

Group Farming Scheme

12. It is proposed to double the agricultural income by Year 2021. To enable this, Government has decided to focus on irrigation, electricity, farm roads, food processing, agricultural technology, marketing, group farming and agricultural credit. For this purpose, Farmer Producer Companies and farmer’s group are being organised. This project will be startedinitially inselected villages. The group would need at least 20 farmers and 100 acre land minimum agricultural land, but no farmer with more than 10 acres will be entitled to join this group. Rs.200 crore is being earmarked in 2017-18 for this project. After seeing the results and response, this project will be expanded to other parts of the State.

13. To cope with climate change and related vulnerabilities Nanaji Deshmukh Krishi Sanjeevani project is being launched in 4000 villages in Marathwada and 1000 villages in Purna basin saline tract with World Bank assistance.

14. Dr. Ambedkar Krishi Swavlamban Yojana is being extended to schedule tribes besides the Schedule Caste beneficiaries. An amount of Rs. 92 crore is earmarked in 2017- 18.

15. So far, 80 lakh farmers have received the soil health card. Government intends to establish Government Agriculture Colleges at Yavatmal, Nashik and Peth, Dist Sangli.

Indebtness of farmers

16. The Government is committed that the farmers should become debt free. At present, 31.57 lakh farmers out of 1.36 crore farmers are indebted at present and due to this they face the risk of going out of the ambit of institutional credit. If the farmer is to get crop loan in future then it is necessary to repay his debts. it is estimated that the total institutional indebtness is 30,500 crore. The State Government has increased the investment in agriculture sector so that the farmer comes out of the debt trap. If the huge collective indebtedness is to be written of it will have an impact on investment in the agriculture sector.Further, there is no assurance that the farmer will be perennially out of the debt trap. For this purpose the State Government has sought Central assistance. We make it clear that the state will also give it support and cooperationfor any effort by the Central Government to reduce the farmer”s old debts.

Youth Skill Development and Employment

17. About 25% of the population belong to the 18-30 age group. Pramod Mahajan KaushalyaUdyogathaVikasAbhiyan is under implementation to give skill training for youths in this age category. 1970 training institutions have been listed to give training to 1.22 lakh youths. The training has started and 57% of the trainees are women.

18. A MoU has been signed with 35 industrial groups and 28 MoU are operational for giving skill training to youth and to upgrade the ITI’s in the State under the above Scheme. A sum of Rs.99 crore has been provided for the Abhiyan in 2017-18.

19. To make available skilled masons for house construction work, it is proposed to give training to 10,000 masons (gavandis) by associating then in the Rural Housing Project. This will give them an opportunity for both skill up-gradation and employment.

20. The “Deen Dayal Upadhyaya GraminKoushalya Yojana” is a central scheme and provides for training to youths in 15-35 age group. It provides for both training and follow up employment. It is proposed to give training to 21597 youths and provide them employment in the organised sector. An amount of Rs. 59.66 crore has been provided in 2017-18.

21. About 4.09 lakh works are under progress in Mahatma Gandhi NREGA. It is expected that 7.25 crore mandays will be created under this Scheme this year. This is a demand based scheme. The wage rate will be increased from present Rs. 192 per day to Rs. 201 per day from Pt April 2017. It is expected that expenditure will be around Rs. 2800 crore in 2017-18 in this scheme.

Backyard Poultry

22. To promote backyard poultry, intensive poultry development blocks will be established through Public Private Partnership (PPP) route in 302 blocks of the state.

23. Animal Husbandry is an integrated part of rural life and farming. It is proposed to establish 349 mobile veterinary dispensaries to give timely veterinary treatment to animals.

24. Sheep units will be made available to traditional sheep re-earning communities with 75% subsidy. The required funds will be made available and after evaluating the response and impact, the scheme will be considered for further expansion.

25. It is proposed to create local employment through various activities like crab farming, oyster culture and other similar activities as well as by promotingeco tourism in mangrove forest areas. This will be implemented through the local Mangrove Protection Committees. For this purpose an amount of Rs.15 crore is being earmarked in 2017-18.

A sub centre for crab hatchery is being created in Sindhudurg District on the lines of the centre now operational in Tamilnadu. A sum of Rs.9.31 crore is provided for this initiative in 2017-18. Likewise prawn hatcheries will also be developed.

26. To promote bamboo, it is proposed to create a multi stake holder company. For this purpose a sum of Rs. 15 crore is being provided in 2017-18.

27. Maharashtra has almost 3 crore and 99 lakhs labourers in the unorganised sector. The Government has decided to set up a separate Welfare Board for this very important segment of society.

28. The Government has decided to focus on employment generation this year. At present a number of schemes and programmes to promote and provide employment are being implemented through many departments. It is proposed to create a monitoring cell in Planning Department to coordinate and ensure effective implementation of various employment schemes of the Government.

29. The Economics department of Mumbai University is one of the oldest in India. Mumbai University is also celebrating its 160th Year. To coincide with this it is proposed to give support to the efforts to upgrade the Economics Department as `Mumbai School of Economics and Public Policy’. A sum of Rs.25 crore will be provided to Mumbai University in next five years for this educational initiative.

30. RUSA is an initiative of the Central Government to upgrade the quality of higher education. It is proposed to provide Rs.40 crore as State share for this programme in 2017-18.

31. It is proposed to start courses at the National Law University at Aurangabad from this academic year. An amount of Rs.39.28 crore is being provided in 2017-18 for the three National Law Universities in Maharashtra.

Chandrapur Sainik School

32. It has been decided to start a Sainik school at Chandrapur on the lines of the well-known Sainik school at Satara. An amount of Rs. 200 crore will be made available in stages for this project which is implemented in collaboration with Ministry of Defence, Government of India.

Infrastructure – Roads

33. Infrastructure is critical for development. “American roads are not good because America is rich, but America is rich because American roads are good.” are the famous words of President Kennedy. Government gives most attention to road development and improvement. As against Rs.4347 crore last year a sum of Rs. 7000 crore is being made available in 2017-18.

34. 195 works are proposed to be taken up under the Hybrid Annuity Road Programme valuing about Rs.30,000 crore. For this, an amount of Rs. 3,500 has been allotted in 2017-18. The survey and estimation will be done as per leder processand will available in PWD website. It is expected to complete 10,000 KMs in two years and thereafter they will be maintained my contractor for next 10 years.

35. It has been decided that in future repair and maintenance work willbe taken for 10 KM package only to ensure proper supervision. Likewise, special attention will be bestowed on road up-gradation.

36. A special recurring facility has been established for receiving Central Road Funds from Government of India. As against 2,545.46 crore received between 2001-13, now after the new central government since 2014, an amount of Rs. 4546 has been received. About 2,211 Kms of roads are being improved and construction of 252 big bridges taken up. I thank Central Government for this support.

37. The length of national highways which was 4,571 KMs in Maharashtra till March, 2014 is now 15,504 KMs. Thus there is an increase of 10,833 KMs just in last two years which is matter of pride.

38. Work order has been given for a road length of 4700 kms in the Chief Minister Gram Sadak Yojana. An amount of Rs.1630 crore is being provided for this scheme in 2017-18. In addition funds are being provided from the district schemes. Further, Rs.570 crore is being earmarked for Prime Minister Gram SadakYojana.

Railways

39. A sum of Rs.50 crore is being provided as share capital for the SPV which is being created in partnership with the Ministry of Railways. This will be implementing the three rail projects in the State. A sum of Rs.150 crore is being provided to complete the three projects namely Ahmednagar­Beed-Parli Vaijanath, Wardha-Yavatmal-Nanded and Wadsa Desiganj- Gadchiroli.

Ports

40. The State Government through Maharashtra Maritime Board has entered into an agreement with Jawaharlal Nehru Port Trust at Vadhvan near Dahanu. Maharashtra Maritime Board will hold 26% equity in project SPV i.e. VadhavanPort Project Ltd. (VPPL). This is the first corporate major port being set up in the country with equity participation of State Government.

In order to expedite implementation of port connectivity projects, the State Government through Maharashtra Maritime Board has entered into JV Agreements with port promoters of Jaigad Port and Dighi Port for construction of Railway Lines from Jaigad to Dighi and Dighi to Roha. In both project SPVs Maharashtra Maritime Board has equity participation of 11% each. An outlay of Rs. 70 crore has been earmarked for this purpose in F.Y. 2017-18

Under Sagarmala Programme a sum of Rs. 17.95 crore have been received for development of 8 Jetties. The estimated cost is Rs. 71.78 crore to be shared on 50-50 basis by centre and state. The jetties at Goraie, Vasi, Bhaynder, Narangi, Karva­Desari, Manori, and Godbandar and Malvan have been identified for this purpose.

Airports

41. On the occasion of completion of 100 years of Samadhi of Shirdi Sai Baba, it is proposed to speedily develop Shirdi Airport. It is also proposed to develop the airports at Solapur, Karad, Amravati and Chandrapur. For this purpose an amount of Rs. 50 crore is provided in 2017-18. Likewise, an amount of Rs.100 crore is being provided for development of MIHAN. The steps for up gradation of Nagpur Airport to international standards has been initiated.

Energy

42. To save power and water is a national duty. For this purpose, in future, all Government buildings will be constructed as ‘green buildings’. This will lead to saving of water and electricity. The existing buildings with Public Works Department will also be retrofitted in stages.

43. A sum of Rs.361 crore is expected under the incentive scheme for non-conventional energy from Government of India.

44. MahaNirmiti company is expected to generate 750 watt solar energy in the first phase of its solar energy project. For this purpose sum of Rs.525 crore is proposed as share capital.

45. A sum of Rs.1,000 crore is provided for power subsidy to new units in Marathwada and Vidarbha.

46. The Government implements the “Package Scheme of Incentive” to encourage the setting up on new industries or the industrially backward areas of the State. An outlay of Rs. 2650 crore has been provided for the scheme in the budget of 2017-18.

47. The Government has launched the Maharashtra State Industrial Cluster Development Scheme to improve the competitiveness and productivity of the small, minor and medium scale industries in the state by providing common facilities. As provision of Rs.60 crore has been made for this scheme in the 2017-18 budget.

48. Adequate area has been made available to investors in Aurangabad under the Cluster Development Scheme. The Central Government will provide Rs. 570 crore for this scheme in the year 2017-18.

MAHAINFRA

49. Infrastructure development is a crucial objective of this Government. However, investments in infrastructure require a large sum of capital. In the next 5 years, we envisage approximately a requirement of Rs.one lakh crore to finance capital expenditure of key infrastructure projects. Given the constraints in raising such huge amounts from available sources of funds in the traditional method, there is a need to look at alternative methods to generate funds for infrastructure development. Keeping this is mind, the government is proposing institutionalizing of an infrastructure fund for which a separate SPV is being considered namely MAHAINFRA.

The SPV is proposed to act as a single window for aggregating the land held by various department for securitization which are neither in use nor expected to be developed by the holding department for next 10 years. The land will be escrowed to the SPV for generation of funds. Securitization of the land will aid in raising funds through low cost loans/ bonds/ investments from large investors with long term horizons like national or international pension and insurance funds.

Thus, the SPV would be a need based financing, fund raising and advisory agency of the government. The government will also recruit a team subject experts from varied fields for increasing the efficiency of the institution. The government is also exploring the possibility of converting the MAHAINFRA into a Non-Banking Financial Company (NBFC) in lines with Gujarat State Financial Services Ltd

50. The Swachcha Bharat Mission (Rural) is a centrally sponsored scheme which is under implementation from 2nd October 2014. So far 10 districts, 103 talukas & 14000 Grampanchayats have been declared as open defection free (ODF) settlements. It is planned to make entire Maharashtra ODF free by March 2018. An amount of Rs. 545.66 crore has been earmarked from state and district level funds in 2017-18 for this key programme.

51. The Chief Minister Rural Drinking Water Scheme is under implementation to solve drinking water problem in rural and remote parts of the state. A sum of Rs. 300 crore is earmarked for this scheme. It is planned to take up 500 new water supply schemes and release funds as per requirements.

52. A sum of Rs. 200 crore is being earmarked in 2017-18 under Jalaswarajya Scheme-2 to provide assured quality drinking water to 39 periurban settlements.

53. Marathwada has been facing recurrent problem ofnon availability of adequate drinking water due to recurrent droughts caused by erratic monsoons. As a long term solution to this issue, it is propose to go for an integrated drinking water grid. For this purpose, as a first step, it is proposed to engage renowned consultants, of international standards to do a feasibility survey.

54. The Government of Maharashtra is implementing the Maharashtra SuvarnaJayantiNagarotthan Mission to provide basic urban infrastructure in all the Nagar Palikas/ Nagar Parishads and ‘D’ class municipal corporations in the State. An amount of Rs. 1100 crore has been proposed for this mission in the budget of 2017-18.

55. Maharashtra has been a leading state in the Smart Cities Programme of the Government of India. Pune and Solapur was selected in the first round and Kalyan-Dombivali, Nagpur, Nashik, Thane and Aurangabad have been selected in the second round. Maharashtra is the only state to have 7 cities selected under this programme. The budget of 2017-18 proposes Rs. 1600 crore for the Central & State share of this Programme.

56. AMRUT (Atal Mission for Rejuvenation and Urban Transformation) has been launched by the Government of India to provide for basic infrastructure such as water supply, sewage, urban transport, and green spaces in urban areas. This mission will benefit 44 cities in the state covering 76% of the state’s urban population. A provision of Rs. 1870 crore has been proposed in this budget as Central and State share for this mission.

57. It is dream of everyone to have one home of his own. To enable realise this dream, construction of 2 lakh 50 thousand house will be taken up in 2017-18. Under the Prime Minister AwasYojana (Urban) in various cities and towns of Maharashtra the state share for this centrally sponsored scheme will be provided from budgetary provisions and the shelter fund.

58. The Government of India has initiated in the Swacha Bharat Abhiyaan to provide a better environment to the citizens by making the cities clean, healthy and beautiful. This ambitious programme is being implemented with focus and rigour in the State and itis getting tremendous response from the people. We have proposed Rs 1605 crore for this programme in the budget of 2016-17 to cover the Central and State Share.

59. Mumbai is the financial capital of the country. The citizen are hard pressed to match up to the pace of development of the growing metropolis. Hence he Government has taken up implementation of very large infrastructure projects in Mumbai to improve the quality of life of the citizen in Mumbai. The metro network of Mumbai aims at strengthening the public transport system in the city.

The work on the Colaba-Bandra-Seepz( metro line – 3) has commenced and work orders have been given for Dahisar –D. N. Nagar (metro line 2 A) and Dahisar – Andheri (Metro line 7). An outlay of Rs.710 crore has been proposed for these Mumbaimetro projects as well as the metro projects of Nagpur and Pune in this budget of 2017-18.

60. In addition, large infrastructure projects such as the Sewri – Nhava Sheva Mumbai Trans Harbour Link, Navi Mumbai International Airport, Navi Mumbai Metro Project and Coastal Raods in Mumbai have been initiated. The Government is taking all efforts to complete these projects expeditionary.

61. It has been decided to upgrade the functional Marathwada Cancer Centre at Aurangabad to a State Level Cancer Institute. For this purpose, a sum of Rs. 126 crore will be provided from Central and State funds. Likewise, it is propose to develop good quality cancer treatment centres at Revenue Divisional Headquarters.

62. Breast, uterus and oral cancers are the most common form of cancers. Early detection and treatment leads to improvement in 75% cases and reduces cancer fatalities. It is proposed to introduce mammography machines and other related medical equipmentsin 253 government medical hospitals , rural hospitals and the like. For this purpose an amount of Rs 43 crore is earmarked in 2017-18.

63. CT Scan machine will be installed in 31 hospitals for proper detectionof ailments . Rs. 54 crore is earmarked for this purpose.

64. The scope of Rajiv Gandhi JeevandayeeArogyaYojana will be widened and extended and a new Scheme Mahatma Phule Jana ArogyaYojana will be started from 2017-18. A sum of Rs.1,316 crore is earmarked for this scheme in 2017-18.

65. Government of India is implementing the Rural Health Mission from 2005. It is a major scheme of the Government and a sum of Rs.1549 is being provided from Central and State funds in 2017-18.

66. Likewise, the Rural Urban Mission is under implementation from 2013-14. An amount of Rs. 211 crore will be available for this Scheme.

67. An amount of Rs.559.30 crore is being made available for construction of medical colleges and attached hospitals in 2017-18 and their necessary up gradation.

68. A treatment, training and research centre for treatment of ‘Monkey Fever’- prevalent in the border areas of Maharashtra-Goa-Karnataka will be established in Sindhudurg District.

Last year, a record breaking 2.83 crore trees were planted, which has been noted in Lima Book of Records. It is the endeavour of this Government to protect the environment and minimise pollution. The Government has started the Namani Chandrabhagha Abhiyan to clean up the river. I now declare a number of schemes to protect the environment.

69. A Centrally supported project to reduce pollution in MulaMutha River has been sanctioned for an amount of Rs.990.26 project. This effort is to be completed in six years. It is expected that about Rs.100 crore will be released this year.

70. A programme for environmental awareness has been taken in twelve districts in the high schools. An amount of Rs.20 .88 crore has been earmarked for this programme.

71. To reduce man-animal conflict in areas adjoining forests, Dr. Shyama Prasad Mukherjee Jan Van Vikas scheme is under active implementation. The scope of this scheme is being widened by including chain link fencing and gas cylinder distribution. For this purpose an amount of Rs.25 crore for this programme. Further, to support those who willing wish to migrate out of Reserved Forests, it has been decided to provide compensation at four times of their land. A sum of Rs.45 crore is being provided for this programme in 2017-18.

72. It is proposed to start a Forest Fire Control training centre in the existing Forest Academy complex atChandrapur. An amount of Rs.5 crore is provided for this purpose.

73. It is proposed to earmark an amount of Rs.80 crore in 2017-18 for eco tourism projects in NavegoanNazira, Pench and other tiger projects.

74. It is proposed to continue the massive tree planting drive that was started in 2016. It is proposed to take up 3 crore plantations in 2017, 13 crore plantations in 2018 and 33 crore plantation in 2019 totalling 50 crore tree plants.

Scheduled Caste Sub-plan

75. An amount of Rs.7,231 crore is being provided for various Special Component Schemes for the welfare of Scheduled Castes. Of this Rs.2700 will be implemented at district level.

76. It is proposed to provide Rs.1884.99 crore for Sanjay Gandhi Niradhar Anudhan Yojana and Sravan Bal Seva Rajya Nivrutti Yojana .

Tribal Sub Plan

77. An amount of Rs. 6754 crore is being provided under Tribal Component Schemes.

78. Government of India is promoting ‘Stand Up India Yojana’ to promote entrepreneurship for scheduled castes and Nava Baudha. An amount of Rs.25 crore will be provided for this scheme .

79. To reduce malnourishment in tribal areas, and to strengthen health of pregnant women and lactating mothers, and children between age of 7 months to 6 years Dr. Abdul Kalam Amrut Ahaar Yojana has been started. The scope of this programme has been widened to provide benefit to 1.17 lakh women and 7.61 children.

80. Godowns are being taken up on rent in tribal areas of the State, to store grains procured by the Tribal Development Corporation.

VJNT, OBC, SBC Welfare

81. A separate department is being started for the welfare of VJNT, Special OBC, and OBC from Pt April 2017. An amount of Rs,2384 crore is being made available in 2017-18 for various programmes like hostels, ashramshala grants and scholarships.

82. Rajashree Shahu Maharaj Research Training and Human Development Institute (SATHI) will be started to promote the overall development and welfare of OBC’s, SBCs, and DTNT communities.

83. For the comprehensive development of economically weaker sections, an amount of Rs.200 crore will be provided to Annasaheb Patil Arthik Mahas Vikas Mahamandal. Likewise an amount of Rs.200 crore will be provided to OBC Corporation and Rs. 50 crore for Shamrao Peje Konkan Kunbi Vikas Mahamandal.

Minority

84. Rs.350 crore is being provided for the welfare of monitories in the 2017-18 budget.

85. An amount of Rs. 125 crore is being provided to improvement the settlement of minorities and for providing various basic facilities in rural and urban areas.

86. Training is being provided to minority category students to appear for UPSC, MPSC, Banking services and other competitive exams. Further skill training is also provided. An amount of Rs.8 crore is being provided for this initative.

87. An amount of Rs.310.57 crore is being provided for supplementary nutrition to children in anganwadis .

Women

88. State Women’s Commission has been constituted to take up Women’s related issues and for their empowerment. Rs.7.94 crore has been provided for the Women’s Commission in this year’s budget.

89. Rs.133.84 crore has been provided in 2017-18 for the DeendayalAntyodyaYojana .

Asmita Scheme

90. A new scheme to be called Asmita’ will be started to provide ‘sanitary napkins’ at subsidised rates to young adolescent girls studying in ZP schools .

91. Smart Gram Yojana has been started on 21st Novemebr 2016. This provides for healthy competition among Gram Panchayats at Block and District levels . Successful villages will receive Rs.10 lakhs and Rs.40 lakhs as prizes at talukalevel and district level respectively. Rs.53.80 crore has been earmarked for this novel scheme.

92. Housing for All is the motto of Government. 55,000 houses will be constructed for Scheduled Castes under the Ramayi Awaz Yojana. An amount of Rs.800 crore has been provided for this scheme. Further those who do not have housesits of their own will get support from Deendayal Upadhaya Bhukhand Kharedi Yojana.

93. Swachcha Bharat Mission (Rural) has been launched from 2014. So far 10 districts, 103 taluka and 14,000 Gram Panchayats have been declared as Open Defacation Free. It is proposed to make entire Maharashtra ODF by March 2018. An amount of Rs.545.66 crore has been earmarked from Centre, State and District level funds for this important scheme.

94. A target of 1,88,000 has been set for the year 2017-18 under Prime Minister AwazYojana (Rural). Out of the houses to be completed 50% are meant for SC and ST categories, 15% are given to minority category beneficiaries and balance to other categories. The amounts are directly credited to beneficiary’s bank account on completion of each stage of their house. Rs.314 crore is being provided as 40% State share for this programme.

Further amounts are provided under similar scheme of the State Government that is Ramayi Yojana for SC beneficiaries and Shabari for ST beneficiaries. An amount of Rs.314 crore is being allotted for this purpose.

95. There are 125 blocks under ManavVikasKaryakram. To generate focussed employment it has been decided to provide 100 crore , for employment generation schemes in selected 25 blocks .

96. Rs.80 crore is being provided for construction of godowns by the Food and Civil Supplies department. The number of Government godowns will increase to 1200 and increase the overall capacity to store grains.

97. A computerisation project is being taken up for providing EPOs machines in the ration shops of the Food and Civil Supplies department. This will facilitate cashless transactions in the shops.

98. Rs.174 crore is being provided for the basic infrastructure development of tourist locations in the State.

99. This is the Silver Jubilee Year of the formation of the capital of Sindhudurg District. To coincide with this anniversary Government is providing Rs.25 crore as special grant for development of the district. Further, an amount of Rs.100 crore is being provided for the Tillari Drinking Water Scheme to promote tourism and related activities.

100. Government has decided to develop well known tourist and pilgrimage centres like Mahurgad (Nanded), Jyotibhacha Dongar (Kolhapur), Lonar Sarovar (Buldana), Sindhudurg and Raigad Forts. Required financial support will be provided as necessary.

101. My Government is taking efforts to keep the memories, works and values of great leaders alive for future generation. The contraction of memorials is part of this effort. A provision of Rs 200 crore has been proposed for the grand memorial of Chatrapati Shivaji Maharaj in the Arabian Sea, the grand memorial of Bharat Ratna Dr. Babasaheb Ambedkar at the site of Indu Mill, Dadar and the memorial for Respected Shri. Balasaheb Thakaray at the Mayor’s Bungalow in Mumbai. Further funds as required are proposed to be made available for this purpose.

102. The 150th birth anniversary of father of nation Mahatma Gandhi will be celebrated in 2019. The Sevagram Regional Development Project is under active implementation and so far Rs. 25 crore has been released for the project of Rs. 266.50 crore. It is proposed to provide Rs. 93.80 crore in 2017-18 for speedy completion work by 2019.

103. Financial support will be made available for the development of memorial and related structures at birthplace of Punyaslok Ahilyadevi Holkar at Chondi Village, Jamkhed Taluka , District Ahmednagar.

104. The Pandharpur piligrimage during Aashadi Ekadasi period is most famous and is part of Maharashtra’s cultural heritage. To promote cleanliness and sanitation and for convenience of pilgrims, it is proposed to provide Rs.3 crore every year for construction of temporary toilets in the pilgrimage route.

105. Government proposes to examine proposal to state a Maharashtra School of Drama in Chitranagari premises at Goregoan on the lines of National School of Drama.

106. An amount of Rs. 17.32 crore is being provided in 2017-18 for protection, promotion and development of Marathi language.

It is the expectation of people that Government must be responsive to their needs. Use of IT is a great tool to increase responsiveness of Government and to meet day to day needs of people who interact with Government. A number of measures are declared to promote e-administration.

107. Rs.200 crore is being provided for Information Technology Department as against Rs.8 crore in previous year. This will help them to take up important projects like up gradation of State Data Centre , DBT portal, installation of various portals, cyber security, provision of technical man power and many other related initiatives.

108. It is proposed to bring in optical fibre ring architecture to cover 28,000 villages. Nagpur District has already been declared as the first digital district.

109. Maharashtra is the first state to notify the Maharashtra Aadhar enabled Services Act, 2016. It is decided to directly transfer various benefits to the citizens and target

groups through DBT route to the beneficiaries. Government of India has been able to save Rs.36.500 crore by implementing DBT initiatives. It has been decided to give direct benefit to beneficiaries instead of kind for 62 category of items.

110. CCTV has been activated in Mumbai. Administrative approval has been given to extend it to Nasik and Kalyan Dombivali . It is proposed to take it up in other cities in future.

111. It is proposed to install forensic labs in five districts of Maharashtra namely Thane, Ratnagiri, Solapur, Dhule and Chandrapur so as to increase the rate of conviction.

112. It is decided to implement ‘Dial 112’ in Police Department. It will cover Police, Ambulance and Fire Services.

113. It is proposed to computerise finger print bureau. E challan project has also been taken up by the Government., An amount of Rs.141 crore is being provided in 2017-18 for overall technical upgradation of the Police department

114. Rs.325 crore is being provided for Police Housing.

115. An amount of Rs.12 crore is being allotted for the newly started Maharashtra State Right to timely Delivery of Services Commission and associated offices.

116. The State has the highest number of judges and court complexes in the country. To strengthen the judicial system an additional amount of Rs. 1014 crore will be provided for starting Family courts, additional courts and Fast track courts. This year an amount of Rs.679.53 crore is being made available for court building construction and other activities which will strengthen the judicial administration.

117. It has been decided to digitalise revenue and land records . It has also been decided to remeasure the lands from this year and to complete it in three years. Six districts are being taken up in the first year. An amount of Rs.47 crore is provided for these important administrative initiatives.

118. Revenue is the key department of Government. An amount of Rs.104 crore is being provided for construction of Divisional Commissioner, Collector and Tehsil offices across the State.

119. Substantial amount of Government is blocked in construction of Government buildings. As an alternate it is proposed to examine taking private premises on rent for long periods of lease. A High Level Committee will be constituted to examine the feasibility of this proposal.

120. A sum of Rs.33.66 crore is being provided to the office of Transport Commissioner to computer their records and improve their working.

121. Rs.34.86 crore is being provided to provide required equipments for the office of Transport Commissioner, which would go to minimise road accidents.

122. The Central Government has implemented the 7th Pay Commission. To study the 7th Pay Commission report and give necessary recommendations the State Government has constituted the Rajya Vetan Sudharna Samiti, 2017 in January 2017. Resources for implementing the 7th Pay Commission will be provided at the required time.

123. Merger of Plan and Non Plan

The Administrative Reforms Commission, the high level expert committee under Dr.Rangarajan and also the 12th Finance Commission had recommended the merger of plan and non-plan expenditure in the budget. Further, the Planning Commission has been converted to NitiAyog and the present twelfth five year plan is ending on 31st March 2017. Government of India has merged plan and non in their budget for 2017-18. Accordingly, in Maharashtra also, we have taken the major decision to merge plan and non-plan from 2017-18. The focus will now be capital expenditure. This change will bring in more flexibility to each department to use their entire departmental allocation effectively instead of only the ‘plan’ component which is only 25% of the total size of the budget. Departments will also be able to earmark adequately for maintenance of assets which have been created in the last sixty years.

While making this change I wish to assure the House that there will be no reduction in the total allocation under the Special Component Schemes for Scheduled Castes and under Tribal Component Schemes for the Scheduled tribes. The amounts made available for SC and ST in both plan and non-plan together in 2015-16 will be kept as the minimum assured commitment for them.

The powers of re-appropriation of district annual funds under special component and Tribal component plans which has so far being taken place at state level shifted to the district level.

124. Macro-Economic Review and State Income

The Nominal Net State Domestic Product (NSDP) at current prices for the year 2015-16 is estimated at Rs. 17 lakhs 48 thousand and 771 crore. The per capita State Income for 2015­16 is estimated at Rs. 1 lakh 47 thousand 399 as compared to estimate per capita National Income of Rs. 94,178.

125. State Provision for Schemes 2017-18

The total allocation for schemes in Rs. 77,184 crore. The allocation for District Schemes is Rs. 7,562 crore and for Special Component Schemes is Rs. 7,231 crore and for Tribal Component Schemes is Rs. 6,754 crore. While after merger of plan and non-plan, the concept of Plan outlay is no more in existence, still for comparison I would like to state that the funds earmarked for same category of schemes is Rs. 62,844 crore as against Rs. 56,999 crore an increase of Rs. 5,845 crore or 10.25%.

126. Financial position of the State

While presenting the last budget 2016-17 in March, 2016 it was anticipated that there will be a revenue income of Rs. 2,20,810 crore. However, as estimated from revenue pattern it is likely to reach 2,20,011 crore.

In budget 2017-18 the revenue receipt is estimated Rs. 2,43,737 crore while revenue expenditure is estimated at 2,48,248 crore. Consequently, there will be a revenue deficit of Rs. 4,511 crore. I will try to minimise this deficit by reducing avoidable expenditure and by effective revenues recoveries.

I assure the people of the state through this august house that we will do our best to achieve the objectives that we have set for the development of the state.

Now I turn to Part II of the Budget.

Part-II

1. Tax revenue of the State, as per revised estimates, for the year 2016-17 is expected to be rupees one lakh thirty seven thousand two hundred thirty crore. I am confident that we will be successful in achieving the target of tax This budget does not propose increase in taxes except Value Added Tax on country liquor, foreign liquor and tax on weekly lottery.

Goods and Services Tax

2. Goods and Services Tax system, which will have an important and long lasting impact on the indirect tax system is expected to be implemented from 1st July 2017. GST will create unified market in the country. Commodities produced in the country will become globally competitive and will boost the economic progress of the nation. I am confident that increased trade, enhanced tax base and proper tax compliance in GST will increase the tax revenue of Centre as well as State.

Implementation of Goods and Services Tax

3. The House has discussed the provisions of GST while ratifying the One Hundred and Twenty Second Constitution Amendment Bill, in its Special Session. All the Hon’ble members expressed the necessity of the GST and unanimously approved the ratification of the Constitutional Amendment Bill. Accordingly, the Constitutional One Hundred and First Amendment Act, came into force from 16th September 2016.

Creation of GST Council & its decisions

4. The Goods and Services Tax Council has been constituted to give recommendations to the Union and the States on the matters relating to the implementation of GST. Twelve meetings of the Council have been held under the Chairmanship of Hon’ble Union Finance Minister in which important decisions pertaining to laws and administrative aspects have been taken by consensus.

Speaker Sir, I would like to brief the House about important decisions taken by the GST Council :-

  • GST will be implemented from 1st July 2017.
  • Every tax payer will interact with one tax administration only i.e. either Central’s or State’s.
  • 90 per cent. of tax payers having turnover less than rupees 1.50 Cr. will beadministered by the State Government and rest 10 per cent. tax payers by the Central Government.
  • Tax payers having turnover in excess of rupees 50 Cr. will be divided equally between State and Centre for administration.
  • Compensation Bill draft providing compensation to the States after implementation of GST, has been approved.
  • For the purpose of computation of compensation, annual growth rate of fourteen percent on the revenue for the year 2015-16 shall be considered.
  • Compensation amount shall also include Octroi in Mumbai and the Local Body Tax.
  • Generally,burden of Goods and Services Tax, will be the same as the burden of prevailing taxes.
  • GST tax rates shall be zero, five, twelve, eighteen and twenty eight per cent.
  • Transactions within twelve nautical miles from the coastline will be deemed to be intra-state supplies.

Formation of additional benches of Maharashtra Sales Tax Tribunal

5. GST is expected to be implemented from 1st July, 2017. In view of the new tax system, early disposal of appeals pending under Maharashtra Value Added Tax Act, is necessary so as to make available this revenue. Taking into account the pendency of appeals before the Tribunal, it is necessary to increase the benches of the Tribunal. Therefore, I propose to establish three more benches of the Maharashtra Sales Tax Tribunal.

Raising of additional resources

6. For sustainable and balanced development of the State, raising of additional resources is a must and, therefore, while implementing GST, non-tax revenue receipt also need to be increased. It is noticed that the fees for services provided, Court Fees and fine under various Acts have been fixed long back. These are being reviewed taking into account the current situation. I am sure that additional non-tax revenue would be generated through this process. A sincere attempt is also being made to maintain fiscal discipline alongwith revenue generation.

Amendments to the Tax Laws

7. Speaker Sir, I am proposing some changes in the Tax Laws with an objective to make the provisions in the law easier for compliance and simpler for tax recovery by the tax administration.

> Maharashtra Value Added Tax Act :-

  • The number of appeals filed by dealers under Value Added Tax Act is significant. For disposal of appeals and to unlock the revenue,-

a. I propose to give powers to the appellate authority to remand back, the ex-parte assessment orders for assessment, to the assessing authority. Therefore, the powers of the assessing authority to cancel ex-parte assessment orders are proposed to be repealed.

b. Appellant is required to make part payment of dues to obtain stay for recovery of dues on grounds other than declarations. Lot of time of the appellate authorities get consumed in fixing the part payment amount and therefore, recovery is delayed. Therefore, on the lines of proposed GST Law, I propose mandatory and fixed part payment of 10 per cent of the disputed tax with the maximum limit of Rs. 15 crores, which the appellant can adjust against his dues subsequently. Other consequential and technical changes are also proposed.

  • The time limit to file appeals under Value Added Tax to the High Court against the decision of the Tribunal is one hundred and twenty days. This time limit is proposed to be increased to one hundred and eighty days, so that the Department as well as the dealers get sufficient time to examine the legal aspects of the case.
  • Recovery of the dues as per orders is one of the most important functions of a tax administration. I propose to make the process of recovery more effective, in view of the tactics employed by dealers to avoid the payment of dues.

a. Under the Maharashtra Value Added Tax Act, dues have first charge on the property of the dealer, subject to any Central Law. But there is ambiguity as to when this charge can be said to have been created. To remove this ambiguity, I propose that the charge shall be deemed to have been created on the property of the dealer on the date, mentioned in the demand notice.

b. If a Company does not pay the dues within the prescribed period, such dues can be recovered by auctioning the assets of that company, as per the Value Added Tax Act. It is noticed in many cases that several companies do not have assets. The dues cannot be recovered from the personal assets of the directors responsible for the affairs of the company. I, therefore, propose that for the dues of private company, the company and the directors shall be jointly and severally liable.

  • Interest on refund is required to be given to a dealer, if refund is not given to him within ninety days from the date of order. For “Ease of Doing Business”, I propose to reduce this time limit to sixty days for early grant of refund.
  • A dealer is liable to pay interest for late payment of tax under Tax Laws. E-payment is mandatory for a dealer. However, due to certain technical problems in the automation system of the Sales Tax Department, dealers are not able to pay tax in time. It is proposed to empower the State Government to waive the interest payable in such situations.
  • The pending work under the existing laws needs to be disposedoff speedily, in view of the introduction of GST, so that the tax administration is well equipped to implement GST. To reduce the pendency of old cases, I propose to empower the State Government by a provision to make a suitable plan for disposal on the basis of certain parameters. At the same time, to encourage the unregistered dealers under the Value Added Tax Act to obtain registration so that they become eligible for Goods and Services Tax registration, a provision shall be made to exempt interest to some extent and penalty of such dealers for the unregistered period after payment of due tax.

> Profession Tax Act

  • Tax liability of a person, who applies late for registration or enrolment, can be computed for the periods of maximum eight years prior to obtaining registration/ Due to this eight year’s tax liability, many persons remain unregistered. I propose to reduce this period to four years to encourage more unregistered persons to come forward toregister or enroll.
  • The responsibility to deduct and pay tax of employees is on the employer or organization. Many organizations appoint agents. However, it is noticed that since the responsibility of Profession Tax of such agents is not on the organization, tax compliance is affected. I, therefore, propose to assign the responsibility of Profession Tax on the organization which appoints the agent.
  • Interest is payable at one and a quarter per cent. per month, if a person does not pay Profession Tax in To ensure prompt payment of tax, I propose to align the interest rates under Profession Tax with the interest rates under Value Added Tax.
  • Dealers registered under Value Added Tax are liable to pay Profession Tax. To widen the scope of Profession Tax, I propose that the service providers registered for Service Tax shall also be liable to enrol.
  • Late fee of rupees one thousand is payable if a tax payer under Profession Tax files return late. Assessment of a tax payer is not possible in the absence of returns. To encourage filing of returns, it is proposed to exempt late fee of a tax payer who files pending returns up-to 30th September 2017.

> Entry Tax Act

To ensure due revenue to the State, Entry Tax is levied on some commodities. I propose that the time limits for assessment of an importer under the Entry Tax Act shall be aligned retrospectively with the provisions under Value Added Tax Act, so that sufficient time becomes available for assessment.

8. Speaker Sir, I am now submitting my tax proposals before the House :

> Sugarcane Purchase Tax

In the Budget of year 2016-17, it had been proposed to exempt Sugarcane Purchase Tax for year 2015-16 of the sugar factories, which export sugar to the extent of the Mill-wise Indicative Export Quota (MIEQ), as per the Central Government’s policy. In view of the withdrawal of the export quota policy for sugar factories, by the Central Government this condition to avail exemption is not suitable. Hence, for year 2015-16, there will not be condition of export. I, therefore, propose to exempt tax for year 2015-16 and year 2016-17 to the sugar factories to pay fair and remunerative price to farmers. If we take into account both the years, then rupees seven hundred crore could become available with sugar factories to pay fair and remunerative price to sugarcane farmers.

> Value Added Tax

  • Exemption/concession to essential commodities :-

The State has exempted tax on some of the essential commodities such as rice, wheat, pulses and their flour, turmeric, chillies, tamarind, jaggery, coconut, coriander seeds, fenugreek, parsley (suva), papad, wet dates, solapuri chaddars and towels upto 31st March, 2017. I propose to continue exemption on these items upto the date prior to introduction of GST. In addition to these items, I also propose to exempt amsul. The tax concession on currants and raisins will also continue up-to the date prior to introduction of GST. The concessional rate of six per cent tax on tea will also continue upto the date prior to introduction of GST.

  • Tax Exemption to geo membrane for farm ponds : Central Government has undertaken a project aimed at doubling the income of every farmer till the year Water planning shall have highest importance for this project. “Magel Tyala Shet Tale ” is a promise of our government to farmers. In view thereof, I propose to exempt Value Added Tax of six per cent on geo membrane, necessary for a farm pond.
  • Tax Exemption to soil testing kit : This government has a positive attitude towards farmers. Increasing fertility of soil is necessary to increase the income from agriculture and to achieve this, the concept of “soil health card” has been implemented. I, therefore, propose to exempt soil testing kit from Value Added Tax of 13.5 per cent.
  • Tax Exemption to milk testing kit : Several milk adulteration cases have come to light. Consumption of adulterated milk is harmful to health and could be fatal to children. To encourage use of milk testing kit to check milk adulteration, I am proposing to reduce Value Added Tax of 13.5 per cent. to zero per cent. on milk testing kit.
  • Tax Concession to aviation turbine fuel : Ten small airports at Amravati, Gondia, Nashik, Jalgaon, Nanded, Solapur, Kolhapur, Ratnagiri, Shirdi and Sindhudurg in the State have been included in the Regional Connectivity Scheme to encourage the aviation industry and consequently tourism. I propose to reduce the Value Added Tax on aviation turbine fuel sold to aircrafts, operating under this scheme from five per cent to one per cent for a period of next ten years.
  • Tax Exemption on card swipe machines : This government is committed to the concept of “Digital India”. It is necessary to encourage cashless transactions. I propose to exempt Value Added Tax of 13.5 per cent. on card swipe machines, necessary for cashless transactions.
  • Tax Exemption on gas and electric incinerators : I need not comment on the necessity of All of you are aware of it. It is necessary to minimize the use of wood to avoid degeneration of environment. Keeping this in mind, I propose to exempt Value Added Tax of 13.5 per cent. on the gas and electric incinerators.
  • Value Added Tax on liquor : Manufacturers and importers are eligible to pay Value Added Tax at the notified rate of 23.08 per cent. on the maximum retail price on sale of foreign liquor, Indian made foreign liquor and country liquor. I propose to increase the notified rate of Value Added Tax on foreign liquor, Indian made foreign liquor and country liquor. Now, I propose that Value Added Tax shall be levied at the notified rate of 25.93 per cent. of the maximum retail price of liquor.
  • Lottery tax : Lottery tax is levied on online and paper lotteries in the State on the basis of draw. I propose to increase tax on weekly lotteries from rupees seventy thousand to rupees one lakh.

Certainty in levy of taxes

9. Ambiguity in the levy of Value Added Tax can have an adverse impact on the industry. In case, an industry has not paid the tax for specific reasons and those reasons are prima-facie proper, then it becomes necessary to remove this ambiguity in tax liability.

There is no clarity in the industry about the tax rate on processed sweet-corn for the periods up-to 31st March 2016 and tax liability of the textile industry. It is necessary to clear doubts. I submit following tax proposals relating to processed sweet-corn and textile industry :-

  • Processed Sweet-Corn industry

Processed sweet-corn has a nexus with agro-processing and this industry needs to be encouraged. There being ambiguity regarding tax rate on processed sweet-corn for the periods up-to 31st March 2016, levy of tax would adversely affect this industry. I propose to exempt processed sweet-corn for the periods from 1st April 2005 to 31st March 2016.

  • Textile processing industry

Tax liability arises on the value of goods transferred during the processing of textiles in the textile industry. Since textiles are not taxable, the textile processing industry had been exempted by administrative relief up-to 31st March 2005.

Due to the amendments by the Central Government to the Additional Duties of Excise Act, textile processing industry became liable to tax from 8th April 2011. Textile processing industry was exempted in the budget for the year 2012-13. But, the amendment allowing exemption became effective from 1st May 2012. Therefore, for the period from 8th April 2011 to 30th April 2012, Value Added Tax became payable by the textile processing industry. Barring this period, textile processing has always been exempted for entire period. It has been observed that this industry has not collected tax during the said period from the customers under impression that the exemption is not available only for technical reasons. It becomes, therefore, appropriate to exempt Value Added Tax for the said period. I propose to exempt tax for the period from 8th April 2011 to 30th April 2012 of those textile processor, who have not collected tax from customers or have not paid tax.

> Yarn Industry

The primary process in textile industry is warping and sizing of yarn. Value Added Tax has been exempted from 1st April 2016 on this labour intensive industry having minimal value addition. Normally, yarn is strengthened by using starch, adhesive and mutton tallow and tax liability arises on transfer of property in these goods during processing of yarn given by the employer. Since Value Added Tax is not levied on textile and textile processing, warping and sizing of yarn in composite mill does not attract tax. But if warping and sizing process is done in small scale units then Value Added Tax is attracted. Tax liability of this industry is negligible due to minimal value addition. Taking into account that levy of tax after computation of tax liability may adversely affect this industry, I propose to exempt yarn warping and sizing industry for the period from 1st April 2005 till 31st March 2016 of the dealers who have not collected tax from customers or have not paid the tax.

Speaker Sir, these tax proposals are estimated to result in additional revenue gain of rupees 396 crore. This gain has been incorporated in the Budget Estimates of 2017-18. I hope that honourable members of this August House will support the proposals.

Jai Hind ! Jai Maharashtra !!

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One response to “Maharashtra Budget 2017-2018 Highlights with Speech”

  1. Ragunathan says:

    good help

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