M A I N   N E W S

J&K Govt sticks with tax sops in ‘welfare budget’
Dinesh Manhotra/TNS

Jammu, March 6
With an eye on the 2014 Assembly elections, Jammu and Kashmir Finance Minister Abdul Rahim Rather on Wednesday presented a “welfare budget” by focusing on infrastructure development, welfare initiatives and continuation of tax concessions.

In his fifth successive zero deficit budget, Rather announced continuation of VAT relief on basic food items for the welfare of people. “Some states have been charging VAT on basic food items such as atta, maida, suji, besan, pulses, paddy and rice,” he said, adding that the state government had decided to continue with exemption of VAT on these commodities.

“I had estimated the annual loss of revenue due to these exemptions at Rs 200 crore in 2011 but keeping in view the overall public welfare, I propose to extend these exemptions further up to March 31, 2014,” the Finance Minister said.

The minister also proposes to exempt levy of VAT from subsidised small tractors, power tillers and other agricultural implements and attachments.

The budget has further kept provision of Rs 5 crore for housing and Rs 9 crore for transit accommodation of Kashmiri migrants under the Prime Minister Reconstruction Programme (PMRP), besides Rs 8 crore for migrants’ group medi-claim insurance. The government has made provision of Rs 2 crore under the Medical Aid Trust Fund and enhanced wage rates of daily rated workers to Rs 150. It also plans to explore and participate in insurance cover for journalists.