<p>Diesel will be less taxing on your pockets as it will be cheaper by 50 paise per litre from April 1. But, get ready to pay more for cigarettes, beedies and other tobacco products. <br /><br />Gold, noble metals, precious and semi-precious stones will cost less with the State government deciding to reverse the one per cent hike in VAT effected last year.<br /><br />Chief Minister D V Sadananda Gowda, who also holds the Finance portfolio, did not make any changes in the two major Value Added Tax (VAT) slabs of 14 pc and 5 pc in the budget proposals for 2012-13. In other words, there will be no change in tax on purchases on commodities. <br /><br />However, Gowda has brought some commodities out of the 14 pc and 5 pc VAT slabs. VAT on ready-to-cook chapathi and parota, surgical footwear, blackboard and naphtha has been reduced from 14 to 5 pc, while VAT on unginned raw cotton, dry chillies has been reduced from 5 to 2 pc. Braille watches have been exempted from VAT. <br /><br />Readymade garments will cost less as VAT on work contracts for their manufacture has been reduced from 14 to 5 pc.<br /><br />The State has kept autofuels out of the VAT regime. It charges 26 per cent sales tax on petrol. Gowda has reduced the sales tax on diesel from 18 pc to 16.75 pc, while retaining the same tax on petrol. According to officials in the Commercial Taxes department, the reduction will result in diesel costing 50 paise less per litre. The rebate will cost the State exchequer Rs 250 crore per annum, officials said.<br /><br />Karnataka is one of the states which levy the highest tax on petroleum products. There has been demand from various quarters that the sales tax rates be slashed. Gowda said the reduction of sales tax on diesel by 1.25 per cent points may not be much, but the government has made a beginning by bringing down the rates. <br /><br />The government has proposed to reduce sales tax on high flash high speed diesel sold to foreign-bound vessels from 18 pc to 1 pc. Finance Department Principal Secretary L V Nagarajan said this had been done to encourage ships, especially cruise ships, to refuel at ports in Karnataka, which will help in generating business and developing economy around ports.<br /><br />At present, foreign-bound ships ignore ports in Karnataka and refuel at ports in Maharashtra and Goa as the sales tax on high speed diesel in these two states is 0.5 and zero per cent respectively.<br /><br />As a part of its additional resource mobilisation measures, the government will be levying 10 per cent luxury tax on luxuries provided in temporary structures operating as marriage halls, seminar halls and convention halls. It also proposes to generate Rs 10 crore by increasing the minimum lump sum tax payable by private bookmakers operating in Bangalore and Mysore.<br /><br />The commercial taxes department has done well this fiscal. Reversal in global economic slowdown, increase in revenue due to hike in fuel prices coupled with buoyancy in domestic consumption of goods and services in all sectors has resulted in the department surpassing its annual target of Rs 26,700 crore set for the financial year 2011-12 by over Rs 400 crore.<br /><br />The government has decided to continue tax exemption on paddy, rice, wheat, pulses and products of rice and wheat for one more year from April 1, 2012. It has also announced several reform measures, including provision for self-assessment under entertainment tax and luxury tax. </p>.<p>Dear puff will become dearer<br /><br />With the increase in the sales tax on tobacco products, prices will be increased in the range of Rs 6 to Rs 10 for various types of cigarettes.<br /><br />The government has proposed to levy five per cent VAT on beedies and increase VAT on cigarettes and other tobacco products from 15 pc to 17 pc.<br /><br />Sources in the industry said that the manufacturers are understood to have decided not to go in for a dual hike, despite the Centre also increasing taxes. <br /><br />Almost all the brands under the Indian Tobacco Company will see an increase in prices from April 1, while Marlboro brand of cigarettes, manufactured by Philip Morris, is not expected to increase the prices immediately. <br /><br />The expected increase in the prices of some of the popular brands of cigarettes are as follows: ITC King - Rs 55 per pack of 10 may cost Rs 65; ITC Small - Rs 39 to Rs 45; Wills Navycut - Rs 44 to Rs 50; and Classic - Rs 55 to Rs 65. </p>
<p>Diesel will be less taxing on your pockets as it will be cheaper by 50 paise per litre from April 1. But, get ready to pay more for cigarettes, beedies and other tobacco products. <br /><br />Gold, noble metals, precious and semi-precious stones will cost less with the State government deciding to reverse the one per cent hike in VAT effected last year.<br /><br />Chief Minister D V Sadananda Gowda, who also holds the Finance portfolio, did not make any changes in the two major Value Added Tax (VAT) slabs of 14 pc and 5 pc in the budget proposals for 2012-13. In other words, there will be no change in tax on purchases on commodities. <br /><br />However, Gowda has brought some commodities out of the 14 pc and 5 pc VAT slabs. VAT on ready-to-cook chapathi and parota, surgical footwear, blackboard and naphtha has been reduced from 14 to 5 pc, while VAT on unginned raw cotton, dry chillies has been reduced from 5 to 2 pc. Braille watches have been exempted from VAT. <br /><br />Readymade garments will cost less as VAT on work contracts for their manufacture has been reduced from 14 to 5 pc.<br /><br />The State has kept autofuels out of the VAT regime. It charges 26 per cent sales tax on petrol. Gowda has reduced the sales tax on diesel from 18 pc to 16.75 pc, while retaining the same tax on petrol. According to officials in the Commercial Taxes department, the reduction will result in diesel costing 50 paise less per litre. The rebate will cost the State exchequer Rs 250 crore per annum, officials said.<br /><br />Karnataka is one of the states which levy the highest tax on petroleum products. There has been demand from various quarters that the sales tax rates be slashed. Gowda said the reduction of sales tax on diesel by 1.25 per cent points may not be much, but the government has made a beginning by bringing down the rates. <br /><br />The government has proposed to reduce sales tax on high flash high speed diesel sold to foreign-bound vessels from 18 pc to 1 pc. Finance Department Principal Secretary L V Nagarajan said this had been done to encourage ships, especially cruise ships, to refuel at ports in Karnataka, which will help in generating business and developing economy around ports.<br /><br />At present, foreign-bound ships ignore ports in Karnataka and refuel at ports in Maharashtra and Goa as the sales tax on high speed diesel in these two states is 0.5 and zero per cent respectively.<br /><br />As a part of its additional resource mobilisation measures, the government will be levying 10 per cent luxury tax on luxuries provided in temporary structures operating as marriage halls, seminar halls and convention halls. It also proposes to generate Rs 10 crore by increasing the minimum lump sum tax payable by private bookmakers operating in Bangalore and Mysore.<br /><br />The commercial taxes department has done well this fiscal. Reversal in global economic slowdown, increase in revenue due to hike in fuel prices coupled with buoyancy in domestic consumption of goods and services in all sectors has resulted in the department surpassing its annual target of Rs 26,700 crore set for the financial year 2011-12 by over Rs 400 crore.<br /><br />The government has decided to continue tax exemption on paddy, rice, wheat, pulses and products of rice and wheat for one more year from April 1, 2012. It has also announced several reform measures, including provision for self-assessment under entertainment tax and luxury tax. </p>.<p>Dear puff will become dearer<br /><br />With the increase in the sales tax on tobacco products, prices will be increased in the range of Rs 6 to Rs 10 for various types of cigarettes.<br /><br />The government has proposed to levy five per cent VAT on beedies and increase VAT on cigarettes and other tobacco products from 15 pc to 17 pc.<br /><br />Sources in the industry said that the manufacturers are understood to have decided not to go in for a dual hike, despite the Centre also increasing taxes. <br /><br />Almost all the brands under the Indian Tobacco Company will see an increase in prices from April 1, while Marlboro brand of cigarettes, manufactured by Philip Morris, is not expected to increase the prices immediately. <br /><br />The expected increase in the prices of some of the popular brands of cigarettes are as follows: ITC King - Rs 55 per pack of 10 may cost Rs 65; ITC Small - Rs 39 to Rs 45; Wills Navycut - Rs 44 to Rs 50; and Classic - Rs 55 to Rs 65. </p>