Get ready! Indirect taxes pack direct punch
While chief minister Manohar Parrikar has mostly spared the populace any direct taxes, the aam admi is going to have to shell out more thanks to the finance minister increasing indirect taxes, including the levy of an entry tax on products purchased online, a cess on products packed in non-biodegradable material, and an up in the cost of various government forms and services.
Reading out the tax proposals in his budget, Parrikar emphasized that "revenue enhancement by means of taxation is proposed to be achieved without taxing the people, who are already burdened with rising prices, but by rationalization of various available resources".
He then went on to notice the "increasing trend of online shopping, where the web becomes the market place and goods are purchased and sold in virtual space and the same can be delivered at the homes or designated address of the purchaser, through various courier services, where billing is not done locally and hence the state loses sizeable revenue".
To protect this revenue, the government will now levy an entry tax on such courier services or agents or interstate stage carriages, who deliver these goods locally. The CM said it would be their (courier services and stage carriages) responsibility to obtain registration under the Entry Tax Act and to pay the tax at applicable rates.
He then proposed a levy of cess, at the rate of 2% of the sale value, on all products sold in non-biodegradable material as identified by the state constituted high-level task force on solid waste management. This amount shall be collected at the first point of sale in the state by the commercial taxes department on the value of the sales figures effected in the local market. So get set for an up in prices of products sold in plastic bottles, Tetra Pak etc.
The levy of 15% VAT on lubricating oil will add to the burden of vehicle owners, while the proposal to revise the costs of various forms available in government offices and charges of government services, during this year, will pinch pockets dearly. [TOI]