The entire Opposition continues boycott of the Assembly session for the third day VAT on wheat flour, maida, pulses down to 1 p.c. Water tax and sewerage tax to be abolished DEHRA DUN: Chief Minister Bhuwan Chandra Khanduri presented a Rs.1,794-crore revenue surplus Budget for 2008-09 in the Uttarakhand Assembly on Monday aimed at lowering the prices of food grains and pulses and introducing tax reforms and rationalising tax rates. A deficit of Rs.328.94 crore was expected and would be adjusted from the Public Accounts fund and the opening balance expected to be about Rs.62 crore. The entire Opposition continued its boycott of the Assembly session for the third day on Monday. The outlay for gender budgeting introduced last year has been doubled to Rs.656 crore. Giving some relief to the common man and the business community, the Budget seeks to reduce VAT on wheat flour, maida, suji and pulses from 4 per cent to one per cent. The entertainment tax on cable TV and DTH has been reduced by 10 per cent. Stamp duty on transfer of immovable property and additional stamp duty in urban areas has been reduced by 1 per cent. The exemption limit on stamp duty for agricultural loans has been increased to Rs.3 lakh. Water tax and sewerage tax of the Uttarakhand Jal Sansthan are to be abolished and arrears of all consumers amounting to about Rs.24 crore are to be waived. The Budget seeks to usher in tax reforms and rationalise tax rates by reducing red tape and making VAT more user-friendly. VAT rates on purchase of raw material will be brought down to be at par with Central Sales Tax. A compounding scheme at 4 per cent VAT for roadside dhabas and employees' canteens having a turnover up to Rs.50 lakh will be implemented. A three-month extension will be given to dealers who could not declare their stocks by October 1, 2005, under VAT. The procedure for regular assessment will be simplified and dealers having an annual turnover up to Rs.5 crore need not come to the tax office, Mr. Khanduri said. In another major step, the Budget seeks to ensure quick refund of Input Tax on production of export-related documents instead of bank guarantee. Input Tax Credit will be given on consumables in addition to raw material, Mr. Khanduri said. A Universal Health Scheme will be launched to provide hospitalisation treatment up to Rs.30,000 and accidental death insurance of Rs.25,000 to any member of BPL families.