Jammu, March 6
Except for an increase in the excise duty on Indian-manufactured foreign liquor (IMFL), the Budget proposals for 2002-2003, presented by the Finance Minister, Mr A.R. Rather, in the Jammu and Kashmir Assembly here today carry a series of tax concessions. No fresh taxes have been imposed in what is being called a voter-friendly Budget in view of the Assembly poll this year.

Mr Rather said in view of the ongoing turmoil and on account of destruction caused to many sectors by militancy-related violence, the scope for imposing fresh taxes was highly limited. Instead people who had faced severe losses and difficulties, deserved some tax relief.

He said as part of the additional resource-mobilisation programme the government proposed to enhance the level of tax realisation and impose a mild burden on tipplers. The Finance Minister has proposed enhancement in the rate of the excise duty chargeable on deluxe and premium brands of liquor to Rs 150 per LPL and Rs 130 per LPL respectively. Similarly, graded duty is proposed to be charged in respect of these item handled by the Canteen Stores Department. The measure was expected to yield an additional revenue of about Rs 3 crore per year.

Mr Rather also proposed to enhance the import duty chargeable on the IMFL from Rs 10 to Rs 15 per LPL to lap an additional revenue of about Rs 5 crore.

The measure is expected to yield another Rs 15 lakh per year. He said in a bid to boost export from Jammu and Kashmir, it was proposed to abolish the export duty on liquor and beer.

The Finance Minister has proposed to levy sales tax on all goods sold by the Canteen Stores Department. He said the CSD had been selling not only essential items but all luxurious goods and the government had to bear heavy losses by exempting these goods from the sales tax. The Finance Minister has not yet fixed the rate of the proposed sales tax on the CSD items on the plea that he would do so after the House “gave me the mandate” to do so.

Mr Rather was greeted by members, including the Chief Minister, with the thumping of desks when he announced several incentives and tax concessions in case of the handicraft, tourism, entertainment, and horticulture sectors.