No fresh taxes except on tobacco products y VAT on cooking gas, fertilisers goes y Sops for IT, science, Finance Minister Abdul Rahim Rather today presented a "zero deficit" budget for 2012-13. Except proposing a hike on tobacco products and liquor, the Finance Minister announced various sops for the common man in the Rs 33,853-crore annual budget. He also projected the state’s economic growth at 7.5 per cent for next fiscal. Although the Finance Minister has presented zero deficit budget, the Economy Survey Report presented by the government a few days ago in the Assembly had presented a gloomy economic condition of the state. The Economy Survey Report stated that the state government had to repay a debt of Rs 31,272 crore. In his 85-minute speech, Rather proposed total exemption of VAT on domestic cooking gas. “Housewives have been weary of rising prices and keep on complaining that their home budget is going out of hand. With a view to improving their home budget, I am inclined to transfer a part of their burden to my budget. Accordingly, I announce complete removal of Value Added Tax (VAT) from domestic cooking gas. I do hope that with this measure, not only will the budgetary deficit of their homes get somewhat mitigated, the pressure on our Power Development Department for more and more energy supply shall also get reduced,” the Finance Minister said. He announced two more sops for empowerment of women. “Under the Beti Anmol Scheme, the government has decided to provide incentives to girl students from BPL families who are seeking admissions to the 11th class. I further propose to fully exempt such girl students from making any contributions to the authorised Local Funds of government higher secondary schools. This measure shall provide them additional financial relief, varying between Rs 600 and Rs 900,” he stated and added that forms for competing in various examinations would also be provided free of cost to the girls belonging to BPL families. Announcing benefits for the farming community, the Finance Minister announced exemption of all types of VAT on chemical fertilisers. “Chemical fertilisers, bio-fertilisers and micro-nutrients are extensively used for improving farm productivity. As a sequel to the earlier tax concessions, announced by me for my brothers engaged in agriculture, I propose to fully exempt all types of chemical fertilisers, bio-fertilisers and micro-nutrients from the levy of VAT.” He also announced that VAT would be exempted from all types of fungicides. Food grains would continue to be exempted from VAT, he added. Rather announced that the tax concession to the industry would continue. “The tax concession to the industry costs nearly Rs 500 crore annually. I had announced extension of the benefit of this tax concession to the industry for one more year or till adoption of the proposed GST regime by our state, whichever happens earlier. The period of concession expires on March 31, 2012. On the aforementioned consideration which is still valid, I announce continuation of the existing concession to the industrial units for a further period of one year up to March 31, 2013, or till adoption of the new GST regime by our state, whichever happens earlier,” he stated. To encourage the information technology (IT) sector, the Finance Minister also proposed to wholly exempt computers, pen drives, CDs, memory cards, chips, headphones, computer cleaning kits, and electronic diaries from VAT. He announced that 13.5 per cent VAT would be exempted from stationery items like adhesives, gums, glues, adhesive solutions, gum pastes, resins, tapes, tags, markers, sealing wax, paper envelops, pencils, crayons, highlighters, erasers, sharpeners, pencil and takhti. He also announced that IT institutes, IT coaching centres and IT educational institutions would be exempted from tax. The Finance Minister proposed to remove all types of medical, diagnostic and curative services from the levy of tax under the J&K GST Act. In order to facilitate and encourage scientific research, he proposed to exempt scientific equipment and critical chemicals, used by the research and development institutes in the state from the levy of entry tax. While defending his decision to propose a hike in the prices of tobacco products and liquor, Rather said smoking and drinking were harmful and equally undesirable. He proposed to increase VAT from 13.5 per cent to 25 per cent on the sale of cigarettes and others tobacco products. He also announced an increase in toll on the import of raw tobacco from Rs 150 per quintal to Rs 250 per quintal. The GST tax on liquor would go up from 25 to 30 per cent. The Finance Minister also announced various incentives for tourism in the state.