Maha budget focuses on farm sector; VAT hiked
MUMBAI: Taking the lead from the Union budget, the state’s finance minister Sudhir Mungantiwar made the ailing farm sector the focus in his budget for 2016-17, announcing Rs26,819 crore for agriculturists. But critics panned the budget for lacking overall vision and the direction to pull the state’s rural economy out of crisis. For you, the agrarian spending, combined with burden of populist decisions by the government, would mean more money off your savings.
The budget has made way for a marginally high Value Added Tax of 0.5% on more than 80-odd items, ranging from hairpins to coir mattress, coffee beans, Ayurvedic medicines, pressure cookers, buckets, pizza bread and hawai chappals, all of which will now have a VAT of 5.5%, instead of the earlier 5%.
Buying a two-wheeler will also cost you more, with motor vehicle tax on bikes hiked in the range of 8% to 10% from the existing flat 7%, based on engine capacity.
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