Tamil Nadu govt proposes 14.5% tax on liquor to garner funds
Maruti Suzuki chairman R C Bhargava told NDTV Profit that the sale of petrol cars will decline in 2012-13 on the back of rising crude oil prices.
The Tamil Nadu government has proposed 14.5 per cent tax on liquor as part of efforts to generate Rs 1,500 crore revenue.
The 2012-13 budget, presented by state Finance Minister O Panneerselvam in the assembly, put the government's total debt at the end of next fiscal at Rs 1,35,060.47 crore, 19.6 per cent of the Gross State Domestic Product (GSDP) and less than Finance Commission stipulation of 24.8 per cent as regards Debt-GSDP ratio.
According to the budget estimates for 2012-13, Revenue receipts are projected at Rs 1,00,589.92 crore and the revenue expenditure was estimated as Rs 98,213.85 crore.
"The state will have a sizeable revenue surplus of Rs 2,376.07 crore in the coming financial year. The total allocation for capital expenditure will be Rs 20,856.08 crore and the total provision for loans and advances will be Rs 1,352.12 crore.
Thus, the fiscal deficit will be Rs 19,832.13 crore, which would constitute 2.87 percent of the GSDP," he said.
The government proposed to borrow "only Rs 18,387.47 crore," though the total borrowing entitlement given by the Centre is Rs 20,716 crore.
In order to implement welfare programmes, the government had taken up various steps for further revenue mobilisation, he noted.
Alocoholic liquor of all kinds purchased, procured and brought outside from the state, other than foreign liquor, under certain sections of the TNVAT Act, will be taxed at the rate of 14.5 per cent at the second point of sale, he said.
