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TN Budget proposes Rs 6.90 billion taxes

A harsh Budget imposing taxes to the tune of Rs 6.90 billion was on Wednesday presented in the Tamil Nadu Assembly by Finance Minister C Ponnaiyan.

After the proposed taxes, the overall deficit was expected to be Rs 6.40 billion.

A two per cent sales tax on rice and wheat is sought to be imposed while jaggery, pepper, pulses and grams will attract a four per cent tax.

However, rice and wheat supplied through the public distribution system would be exempted from the proposed sales tax, Ponnaiyan said.

The government has decided to discontinue the sale of cheap liquor, introduced in January 1 last, from April 14.

It has decided to permit opening of bars in corporations, municipalities and town panchayat areas, the finance minister said.

The government has decided to levy entry tax on motor spirit lubricating oil, bitumen, aluminium, PVC pipes, marbles, granites and ceramic tiles, sanitary-wares, wheat products, newsprints, paper and paper board, iron and steel and compressor, parts and accessories of air-conditioners and refrigerators.

An across-the-board levy of an infrastructure surcharge of five per cent on sales tax on all items except rice, wheat, kerosene, LPG and other declared goods has been proposed by the finance minister, who also announced a tax reform and revenue augmentation commission under the chairmanship of renowned economist Dr Raja R Chelliah.

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