Deputy Chief Minister of Delhi Manish Sisodiya presented the Annual Budget for 2016-17 in Assembly on 28.03.2016 and rationalisesd VAT and Other Duties which may result in reduction in prices of readymade garments, shoes, watches and electric and hybrid vehicles. In this Article we have covered Highlights of Changes related to Taxes/ Duties and Extract of his Budget Speech related to Changes in Tax and Duty Structure.
HIGHLIGHTS OF GOVERNMENT OF NCT OF DELHI BUDGET- 2016-17 RELATED TO VALUE ADDED TAX, EXCISE DUTY, STAMP DUTY, LUXURY TAX ETC.
- Due to transparent, honest, efficient and effective governance, the overall revenue for the fiscal year 2015-16 has grown at an unprecedented rate of 17% as compared to previous
- Proper care has been taken in formulation of Tax Policy so that the dipstributive character of Delhi is maintained.
- VAT constitutes nearly 65% of total tax revenue.
- Multiple entries relating to some items create ambiguity and confusion which leads to harassment of traders. It has been attempted to simplify the taxation by bringing them into one entry.
- Utmost encouragement to voluntary compliance of tax has been attempted for a strong partnership with trade.
- VAT rate on battery operated transport means i.e. e-rickshaw, battery operated vehicle and hybrid automobile has been proposed to be reduced from 12.5% to 5%.
- VAT on Sweets and Namkeens has been proposed to be reduced from 12.5% to 5%.
- Tax rate on readymade garments costing above Rs.5,000/- has been proposed to be reduced from 12.5% to 5%.
- VAT on marble is proposed to be reduced from 12.5% to 5%.
- VAT rate on watches costing above Rs.5,000/- has been proposed to be reduced from 20% to 5%.
- Rationalization of tax on textiles and fabrics by applying uniform tax of 5% on all varieties of textiles and fabrics (including sare
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