Mumbai The burden of rising prices on the people is expected to go up further as the Maharashtra government has increased the prices of cooking gas by five per cent while the tax rate on diesel cars and jeeps has been increased by 4 per cent.

A two per cent tax is also being proposed on the sale of cars and jeeps using petrol. Air travel within the state is also expected to go up due to a five per cent tax on aviation turbine fuel in places other than Mumbai and Pune from April 1.

Maharashtra Finance Minister and Deputy chief Minister Ajit Pawar Monday tabled a Rs1.53b revenue surplus budget for 2012-13 in the state legislative assembly.

The budget envisaged tax proposals of Rs6b with the five per cent tax on LPG for domestic use coming in for criticism from Opposition parties, the Shiv Sena and BJP.

Pawar said, “LPG for domestic use was exempted in 2008. This concession was continued last year also. It is taxable in many states. Kerosene used for domestic purposes is already being taxed in the state.”

Very expensive

The price of a gas cylinder would be a little more than Rs420 which low income groups find very expensive.

The budget also proposed a 12.5 percent tax on sale of beedi, the poor man’s cigarette, with Pawar explaining, “Tobacco and its products are taxed at 20 per cent. Beedi and un-manufactured tobacco are excluded from tax (at present). Beedi is also equally injurious to health. It is taxed in many states.”

The budget however gives concession for vehicles using compressed natural gas (CNG) with the tax rate being reduced across all slabs. Tax exemption on essential food stuffs remain until March 31, 2013 and these include rice, wheat, pulses, turmeric, chillies, wet dates, sheets and towels made in Solapur and others.

Tax rate on all dried fruits

However, a single tax rate of 5 per cent for all dry fruits has been proposed.

The state’s annual plan of Rs450b envisages fund allocations to the tune of Rs45.90b for a special component plan for scheduled castes, a Rs40b tribal sub plan and Rs49.50b district plan.

With farmers in Maharashtra reeling under severe debt, Rs25b will be allocated for concession on electricity bills to farmers and Rs8.50b set aside for Maharashtra Rural Employment Guarantee Scheme.

Projects in Mumbai under the Metropolitan Mumbai Regional Development Authority will get a boost with an allocation of Rs3.55b whilst the government-run J J Hospital will get a sizable fund of Rs6.33b to be transformed into a super speciality hospital.

Among the four medical colleges to be set up in the state, one will be in Mumbai.