Published On : Tue, Feb 25th, 2014

Withdrawal of LBT was anticipated, State Budget disappoints – VTA

Nagpur News : J. P. Sharma, president and Tejinder Singh Renu, Secretary of Vidarbha Taxpayers Association (VTA) in their joint press release on State interim budget 2014-15 said that even after concluding that revenue collection had drastically dropped by shifting from Octroi to Local Body Tax (LBT), Maharashtra Government disappointed taxpayers by not withdrawing LBT against which traders across State had been agitating since almost a year and although Chief Minister had assured traders that appropriate remedy would be sought shortly has failed to address this grave situation suppressing State traders from growth, which is hitting extremely hard in existing global economy slow down.

Although for MIHAN Rs.250 Crores has been allotted by Finance Minister Ajit Pawar, which is considerable more as compared to last year’s allocation; however how much actually reaches its desired destination is a million dollar question. Still some positive developments towards MIHAN in recent past by Chief Minister Prithviraj Chavan are appreciable. Likewise allocation of funds for Ramtek Temple is welcome.

While we are continuously reading news about sanction of Nagpur Metro Rail Project, still Finance Minister just informed about the project cost being of Rs. 8680 Crores for this 38 kms length two corridor project, but failed to allocate the requisite funds for the same. Vidarbha Taxpayers Association (VTA) had specifically requested in its pre budget memorandum to Government of Maharashtra that taxpayers are not ready accept any new tax, surcharge, fees, etc for any project including Nagpur Metro Rail Project.

Finance Minister also failed to address pending issue of MVAT on buildings under construction from 2006 to 2010, which shall lead to multiple litigations being filed by the assesses in various courts across the State.

Some relief in power sector is welcome step, however we fear that its additional load of expenditure would fall on other revenue departments and ultimately the taxpayers would be burdened more by such act.