No fresh taxes in HP budget

By Our Staff Correspondent

SHIMLA, MARCH 9. Mr. Prem Kumar Dhumal, the Chief Minister of Himachal Pradesh, presented a ``no fresh taxes'' Budget in the Assembly today. This is the fourth budget of his government, which is completing its three years in office on March 24.

Mr. Dhumal, who is also the Finance Minister, said his government has ensured an accelerated pace of development in the State despite assuming office in extremely difficult financial situations.

Over the past three years the growth rate of Himachal Pradesh has been above the national level of 6.3 per cent. Though it had gone up to 7.2 per cent but due to the setback in agriculture for the current year it is 6.5 per cent. The per capita income of the State, which was Rs. 11,831 in 1997-98, increased to Rs. 15,012 in 1999-2000 - a growth of 26.9 per cent.

Giving the revised estimates for the year 2000-01, Mr. Dhumal said it contains a provision for revenue expenditure of Rs. 4,198.89 crores. Of this, Rs. 3,147.15 crores is on non plan account, Rs. 898.78 crores in the plan and the rest relates to Centrally-sponsored schemes.

Tax revenues are estimated to have gone up to Rs. 716 crores. Some measures in rationalisation of taxes are proposed for the coming year. Kerosene lanterns and stoves, mainly used by the poor, will be exempted from sales tax. All types of furniture will now attract a uniform 8 per cent sales tax, while tax on wrist-watches and clocks has been slashed from 12 per cent to 8 per cent. Tax on dhoop and aggarbatis will come down to two per cent from four per cent.

Tax on all electric good and appliances is proposed to be reduced from 12 to eight per cent, barring a few luxury items.

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