Maharashtra Finance Minister Jayant Patil announced in his Budget that farmers who paid their electricity bills regularly would have to pay a tariff of only 25 paise a unit.
The Rs 7,303.35 crore (Rs 73.033 billion) deficit Budget has no new tax proposals.
Patil said plastic goods, electric wires, bulbs and fluorescent tubes, electronic and electrical appliances, sweets and kerosene sold outside the public distribution system would be cheaper now.
Tax on these products has been reduced from 13 per cent to 8 per cent. Tax on some electronic and electrical appliances and kerosene sold outside the PDS has also been cut to 13 per cent from 20 per cent.
The minister announced stamp duty exemption for the middle and lower class on affidavits for obtaining certificates of caste, income, domicile and nationality.
In an attempt to boost manufacturing, the finance minister announced reduction in the tax burden on inputs. "This is also aimed at encouraging purchase of inputs from local suppliers," he said. Patil said the government had decided to eliminate tax on inputs in three years.
Tax on carbon paper and typewriter ribbons has been reduced to 8 per cent and 4 per cent, respectively, from 13 per cent.
99 Units located in special economic zones that are exempted from the payment of tax on their sales and purchases, will also be extended concessions under the Works Contract Tax Act and the Lease Tax Act.
As an administrative measure, the government had decided against recovering the works contract tax on textile processing up to March 31, 2004, Patil said.
Tax on sweets and sweetmeats has been reduced to 4 per cent from 8 per cent.
The exemption on implements used in daily farming operations has been raised to Rs 10,000 from Rs 3,000. Trailers used for farming has been exempted.
Currently, they attract an annual motor vehicle tax of Rs 1,500 (if the weight exceeds 4,500 kg) or Rs 3,000 when the laden weight exceeds 7,500 kg.
The government would not recover tax on diesel used by co-operative fishing societies up to September 30, 1997. He also exempted sugarcane growers from the payment of the sugarcane purchase tax for 2003-2004 crushing season.
