HIGHLIGHTS OF MAHARASHTRA STATE BUDGET SPEECH 2017 Presented for the year 2017 on 18th March 2017. 1) VAT rate on liquor hiked to 25.93% from 23.08% #MahaBudget2017 2) Tax on card swapping machines brought to zero from 13% 3) Purchase Tax of Rs 600 crores on Sugarcane purchased by Mills waived off. 4) No announcement on farm loan waiver as demanded by Oppn and Shiv Sena 5) GST will lead to increase in revenue of the state says FM Sudhir Mungantiwar 6) State government to rent buildings for its offices instead of spending money on building them 7) A Resolution of constructing 2.5 lakh houses under the Pradhan Mantri Awaas Yojana. 8) CCTV network to be set up in Navi Mumbai and Mira Bhayandar too, forensic lab in Thane 9) Maharashtra School of Drama to be set up at Filmcity, Mumbai on the lines of National School Drama 10) Rs 200 crore allocated for memorials of Shivaji, Dr Ambedkar and late Bal Thackeray 11) Infra. fund will be established for the infra projects, “Maha-Infra” SPV will be established to fulfill this purpose. 12) Octroi in Mumbai will go with introduction of Goods and Services Tax 13) ₹1000 crs to be provided for subsidy of power tariffs to encourage industrial units in Vidarbha and Marathwada 14) Roads of length 2211 kms to be widened and 252 major bridges has been passed (A) Tax Changes 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 will continue till the date of migration GST. 3. VAT exemption on Solapuri chaddar and towels continues will continue till the date of migration GST. 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%. 10. VAT rate of 23.08% on MRP of country and foreign liquor increases to 25.93%. 11. Tax on weekly lottery increases from Rs.70,000 to Rs.1 lakh per draw. (D) Administrative changes 1. Establishment of three new benches of Maharashtra Sales Tax Tribunal probably in Pune, Kolhapur and Nagpur 2. VAT appeal 10% part payment necessary for granting stay of demand, subject to maximum payment of Rs.15 crore. 3. VAT dues can be recovered from the Directors of private company. Now company and Directors of company will be jointly and severally liable for all the defaults of the 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. Principal shall be liable for recovery for default of the agent. 6. Review and reduction of fees, fine and court fee amounts under various Acts. These budget proposals are presented on 18/03/2017 and shall be effective from a later date which shall be confirmed after the Act is passed and rules are published.