Maharashtra extends VAT exemptions on foodgrains to FY'11

The Maharashtra budget for 2010-11, presented in the state assembly today, proposes to extend VAT exemptions on food articles for another year, in order to keep prices under check.

Finance minister Sunil Tatkare also did not propose any fresh taxes in a revenue-deficit budget of Rs7,654.50 crore presented in the state assembly today.

The idea is to rely more on privatisation than taxation to raise resources, commented chief minister Ashok Chavan.

"Taxation is not the only way to raise resources. Privatisation of infrastructure can be another," he said.

Tatkare said the government has decided not to levy value added tax (VAT) of 4 per cent on these goods despite recommendation from the empowered committee to do so.

He said commodities like rice, wheat, pulses and their flours, chilli, turmeric, gur, tamarind, coconut, coriander seeds, fenugreek, parsley (suva), papad, wet dates as also Solapuri chadars and towels will continue to be exempt from VAT for another year.

The budget, which focuses on improving the infrastructure in the Konan region, has also laid emphasis on making metro rail a reality in Pune, the state's cultural capital and IT hub.