Guwahati: A sharp reduction in value added tax (VAT) for selected items, upto 5 per cent indemnity in luxury taxes charged from low-budget hotel tariffs and a cut in tax charged on tea auction are the main features of Assam Budget 2012-13 presented by Chief Minister, Tarun Gogoi.
Alcohol, honey, glucose and coal tar are some of the items for which the State Government has condensed VAT from 13.5 per cent to 5 per cent.
For fast industrialisation, the Budget also offers a slide of incentives to industries as per the Industrial and Investment policy of 2008, Gogoi said.
Exceptional incentives will be specified industries having mega status to endorse employment generation, he said.
With the Guwahati Tea Auction Centre facing rigid competition, the Government offers to easiness the tax burden on sellers. The rate of tax on tea auction sale has been planned to be condensed to 0.5 per cent from the existing 1 per cent.
The rate of tax on sale of tea through private planning has also been planned to be cut from the existing 2 per cent to 1 per cent.
To persuade tourism, Gogoi proclaimed exception of luxury tax by up to 5 per cent from room tariff of less than Rs 1,000 and rationalised the rate. This resulted in a returns loss of Rs 3 crore to the State exchequer.