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Gujarat Budget highlight for the year 2015-16

Shri Saurabhbhai Patel has presented gujarat budget for the year 2015-16 on 24th February, 2015. I have presented gujarat budget highlight for the year 2015-16 in this article.

Gujarat Budget highlights for the year 2015-16:

sector wise allocation of funds:

Go through table below to get inside sector wise allocation of fund as per gujarat budget 2015-16.

[table id=1 /]

gujarat budget 2015-16

Summary of fund allocation for various projects:

  1. Rs. 9000 crore has been allocated for Sardar sarovar project to increase farmer’s progress and for the development of irrigation system.
  2. Rs. 4300 crore has been allocated for water resources and Kalpasar division.
  3. Provision of Rs. 531 crore has been made for irrigation in hilly and tribe area.
  4. Huge fund allocation of Rs. 4878.20 crore has been made for agriculture and co operation department under plan and non plan schemes.
  5. Allocation of Rs. 22787.79 has been made for Education department for plan and non plan schemes.It includes Rs. 966.10 crore for mid day meal programme, Rs. 1122.94 crore for secondary and higher secondary schools and Rs. 1550.50 crore for higher and technical education.
  6. Provision of Rs. 7821.63 crore has been allocated for health and family welfare department including Rs. 2517.15 crore for medical education.

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To know more data about allocation of fund in gujarat budget 2015-16, click on following link.

Budget speech. Part A.

Estimates for the financial year 2015-16:

see following table to get insights of estimates for the year 2015-16 as per gujarat budget.

[table id=2 /]

Tax effects as per budget of Gujarat for the year 2015-16:

  1. Reduction of vat rate of imitation jewellery from 5% to 1% only. As a result, tax revenue of gujarat would be reduced to 5 Crore. The reason for this change is to maintain sustainability and employment in imitation jewellery industry.
  2. Oral contraceptive pills used for the family planning are made exempt fully from VAT. It gives state the loss of Rs. 1 crore revenue.
  3. Vat rate on aviation turbine fuel has been reduced from 30% ( for duty paid ATF ) and 38% ( for bonded ATF) to 5%  when sold from the cities other than Ahmedabad and Vadodara for scheduled commercial airlines service flights. Due to this tax cut, state would bear revenue loss of Rs. 6 Crores.
  4. Isabgul and Isabgul hulk has been made fully exempt. Rate of vat on Isabgul before budget was 5%. The reason for tax cut is to encourage farmers to grow more crops of Isabgul and good opportunity of export of Isabgul. This will lead to tax revenue loss of Gujarat to the extent of Rs. 7 Crores.
  5. There was good move in Gujarat budget to give tax refund on tax paid on cotton roving used in manufacture of Khadi cloth. Reason for this step is that cotton roving is used in exempt goods (Khadi cloths). So manufacture cannot tax input credit for tax paid on cotton roving. I am mentioning here that tax on cotton roving is 5% including additional tax 1%. This will lead tax revenue loss of state to the extent of Rs. 1 crore.
  6. There is new levy of tax on technical textile. The vat rate will be 5% including additional vat rate 1%. Technical textile is used in industries like building construction, civil engineering, furniture, house hold textiles, floor covering, shipping, railways, automobiles. This will increase tax revenue of state to the extent of Rs. 80 crores.

Final position of Budget estimates:

[table id=3 /]

 

 

Increase in revenue receipt :

Budget estimates revenue receipt for the year 2015-16 comparing to financial year 2014-15. Revenue receipt is estimated to have increament of 11% comparing to last year. See following table to get insides of estimated revenue as per gujarat budget 2015-16.

ParticularsIn crores
State taxes revenue68,416
State non taxes revenue11,037

No revision in rates of taxes:

There is no revision in rates of taxes in gujarat in budget 2015-16. There is no imposition of new taxes which affect lots of people.

I have presented here highlights of Gujarat budget 2015-16. You can get detailed information on finance department website of Gujarat. Don’t forget to share this article on social media to say me thanx.

 

11 Comments

  1. By PARTH

    if i purchase of 88rs ice cream cup how much vat i have to pay?

    • By admin

      You need to go through schedule of vat to see the vat percentage for ICE cream cup.

  2. hello tarannum,

    Where can I download list of VAT tax rate for all the products and service applicable from year 2015 for gujarat state? Are these rates changed every year like service tax?

    http://gujaratsalestax.gov.in/vattaxrate.htm# are these rates correct ans still in effects?

    • By admin

      Some rates are changed and remaining are same. You need to check gujarat budget highlights of past years for that.

  3. Heloo Tarannum
    where is vat new rate shedual… pls send the link of new vat rates

    • By admin

      There is no new schedule available. YOu need to download old schedule from commercialtaxgujarat site and consider changes in each budget till date.

  4. By ketan chauhan

    Hi Taranum

    There is change in vat rate in chemical company previous rate 4+1 percentage .

    ketan chauhan

  5. By ketan chauhan.

    Hi Taranum

    In new budget, what is the new rate of vat in chemical company, previous it was 4+1 percentange.

    ketan chauhan.

  6. By prakash thacker

    What is the vat rate on gum acacia powder. In gujarat ?

  7. By Nimesh Hindocha

    Hi, may i know the recent changes in budget made with respect to waiver of interest & penalty on old recovery up to 31.12.2015

  8. By Sb

    Hi, i want to know what is C Vat (4%) and B VAt (1%) that is charged to me when I buy garments from a mall. I understand 4%, what is the additional 1% for? It’s described as ‘B VAT’. Thank you.

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