Meanwhile, the Local Body Tax in 27 corporations has already been scrapped in the state.
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The state government has committed itself to spending Rs 3,332.57 crore for measures like compensation for crop loss, damages to houses, crop insurance, interest waivers and grain at affordable prices to farmers in 14 districts.
A range of items including petrol, diesel, alcohol, cigarettes, cold drinks, diamond and gold jewellery will cost more from tonight in Maharashtra, as the Devendra Fadnavis government, in a desperate bid to bolster its finances, has chose to levy a surcharge to tackle drought in the state.
“We are hoping to raise Rs 1,600 crore in the next five months, and a further decision will be taken in the next budget”, said Mungantiwar.
“To deal with the situation and help farmers facing one of the worst droughts, the government has chose to impose additional surcharge on petrol and diesel and additional Value-Added Tax of liquor, cigarette, soft drinks diamond, gold, silver and their ornaments”. Similarly, the LBT has been waived off for alcohol, beverages and cigarette as well. “People of Maharashtra are sensible enough to bear the hike for the sake of farmers”, said Mungantiwar. “Today, the cabinet also made a decision to scrap the LBT on fuel in municipal areas”, he said.
Earlier, LBT was levied on petrol and diesel as the state reasoned that since fuel companies have a turnover of more than Rs 50 crore, they can’t be exempted from LBT.
“Petrol and diesel pump owners had complained that this lack of uniformity in rates had affected their business”. The state is taking a hit of around Rs 1,800 crore i.e. Rs 300 crore per month.
“(The increase will apply) till GST comes into force and in case if it does not happen, then we will do a rethink in the next budget if necessary”, Mungantiwar said, adding they would focus on purse tightening, streamlining purchases and proper utilisation of resources to make ends meet. “We will have a special Cabinet meeting to discuss the same next month”, Mungantiwar said. With the fresh decision, the amount of surcharge has now temporarily increased up to Rs 3 per litre.
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When the petrol prices fell by Rs 2.11 following the crude crisis; people gained over Rs 1,000 crore due to this reduction. “This is a pragmatic thing done by the state government”, he said.
