However, in a relief to agriculture sector, fertilizers
and insecticides which were taxed at four per cent now would be exempted from
the hike.
The VAT on commodities charged at 12.5 per cent was
hiked to 14.5 per cent as Karnataka and Andhra Pradesh also hiked it to 13.5 per
cent and 14.5 per cent respectively, the release said.
The Centre had abolished Additional Excise Duty (AED)
and permitted states to levy sales tax, the release said, adding hank yarn and
handloom fabrics would continue to be tax exempted.
In edible oil sector, in order to bring bigger players
under tax net, the government had decided to reduce exemption of the turn over
limit from Rs 500 crore to Rs five crore.
Earlier, those companies which were having revenues less
than Rs 500 crore need not to pay sales tax. But with the proposed plan, those
companies reporting more than Rs five crore revenue need to pay sales tax.
In a move that would increase the cost of tobacco and
tobacco products, it was decided to add VAT of 20 per cent to to chewing
tobacco, snuff and cheroot, which were earlier under tax exemption. Beedi and
beedi tobacco will also be charged at 14.5 per cent, it said.
Prices of electronic goods like LCD panels, DVDs, mobile
phones, iphones and ipods and the electronic components would also increase as
the government increased the present tax of four per cent tax to 14.5 per cent.
Registration fees on land agreements relating to title
deeds, lease deeds and power of attorney to sell immovable properties also
revised upwards due to which it was expected to generate additional revenues of
Rs 300 crore per annum, it said.
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