The Aam Aadmi Party government presented annual budget 2016-17 for the state of Delhi. It rationalised the VAT structure to reduce the cost of products such as readymade garments, shoes, watches and electric and hybrid vehicles in the national capital.
Government allocated 10 Crore Rupees for the construction of Aam Aadmi Canteens and 100 Crore Rupees for CCTV in all government school classrooms.
It also proposed to reduce Value-added tax (VAT) on electric vehicles, sweets and readymade garments, e-rickshaw, battery operated vehicle and hybrid automobile, marbles from 12.5 percent to 5 percent. VAT constitutes nearly 65 percent of total tax revenue.
Highlights of government of NCT of Delhi Budget- 2016-17
• VAT rate on watches costing above 5OOO rupees was proposed to be reduced from 20 percent to 12.5 percent.
• Rationalization of tax on textiles and fabrics by applying uniform tax of 5 percent on all varieties of textiles and fabrics (including sarees except khadi and hand loom fabrics) was proposed.
• Tax on plastic waste was proposed to be levied at 5 percent.
• VAT on UPS units was proposed to be increased to 12.5 percent.
• Currently footwears costing above 500 rupees and school bags costing above 300 rupees are taxable at 12.5 percent. It is proposed to apply uniform VAT rate of 5 percent on all kinds of footwear and school bags irrespective of price.
• By launching of new scheme Bill Banvao Inaam Pao powerful impetus was given to public participation.
• An award scheme was launched for Market Association
• Luxuries Tax collection has increased 36.7 percent, while Entertainment Tax collection increased to 60 percent. Threshold limit of luxury tax is proposed to be increased from existing 750 rupees to 1500 rupees per day per room.
• Introduction of self declaration proposed in luxury tax.
• Amendments have been proposed in section 17 of Registration Act so as to make compulsory registration of several new instruments.
• It was proposed to start online search facility for registered documents shortly. All legacy data since 1985 shall be scanned digitized and readily made available to public.
Major Allocations in the Delhi Budget 2016-17
• Total Budget for 2016-17: 46600 Crore Rupees,
• Planned Budget: 20600 Crore Rupees,
• Non-planned Budget: 20000 Crore Rupees
• Education: 10690 Crore Rupees with a rise of 8.68 per cent over the year 2015-16.
• Teacher Training Programmes: 102 Crore Rupees which saw a 11 times rise that is up from 9.4 Crore Rupees.
• Transport Sector: 1735 Crore Rupees
• Three civic bodies: 6919 Crore Rupees
• Citizen Local Area Development (CLAD) scheme: 350 Crore Rupees
• Promotion of Art, Culture and Languages: 54 Crore Rupees
• Delhi Metro: 763 Crore Rupees
• An amount of 676 crore rupees was set aside to provide drinking water through pipeline in every colony by December 2017.
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