CHANDIGARH: The budget for 1986-1987 presented to Parliament by the Union Finance Minister provided a relief to fixed income group and imposed higher levies on luxury items to mobilize additional rupees 467 crores. The budget left an uncovered deficit of Rs, 3,650 crores compared to rupees 4,490 crores in the revised estimate of 19851986. Though the budget provides for the continuation of the existing rate of the personal income tax it raises the standard deductions for the salaried class from 6,000 rupees to 10,000 rupees. The budget exempts 4l lifesaving drugs and medicines from excise duty.
The budget presented by Finance Minister V.P. Singh also estimates of additional sources to be raised. 421 crore rupees will go to the Centre while the state will get 36,22 crores. The affluent sections will have to pay more for Auto-mobiles, Color T,V’s and Air Conditioning. The consumers will have to pay 1.50 per kg for refined oil following the increase in duty to bring it at par with duty on Vanaspati. Whoever exempts soya beans, rice, bray, cotton seeds and sunflower oil from and fresh levies.
Other high lights of the budget are incentive for import substitution and export promotion and ‘several measures of rationalization of tax structure including introduction of modified value as a tax system, The Finance Minister also announced the new scheme for ‘excise concession to encourage healthy growth of small scale units under this scheme.
The exemption in investments in plant and machinery in the small scale sector would be raised from 20 lakh rupees to 35 lakh rupees.
Article extracted from this publication >> March 7, 1986
