By Ruma Dubey

The investors in Mumbai, the commercial capital surely have more than their share of stress. Not just their day-to-day life tensions of commute, cost, house, loans, crowds, traffic, filth and many more; and over and above this, it has to comprehend with first the Union Budget and now, today, the Maharashtra state budget.  With people already reeling under the weight of unbearable costs, this Budget assumed a never before seen sense of anticipation.

This anticipation was because the State Govt has missed all its revenue targets for FY12 and it will now come forth with new ways and means to tax the people more. So the regular Mumbaite has to not only bear the trickle down of costs from Union Budget but also that of the state budget. That is how it has always been but only this time, the burden of costs has now become unbearable. New taxes and hike in duties in Maharashtra has wide spread ramifications, all over India.

As expected, it was all about providing largesse to the farmers and rural Maharashtra at the expense of the city dwellers.  All developments, as usual seemed Utopian and ideal. But as we have seen, nothing happens; all development stays on the paper; except the hike in taxes and duties. In Fy12, only 43% of the allocated money to create additional irrigation potential for two lakh hectares, but it remained largely on paper. Anganwadi’s were to come up in the cities but till date, not a single one has come up. Nothing was done at all; all energies were spent on the elections, with the CM sitting on his hands. Till end of Dec 2011, less than one-third of the budget of Rs 42,000 crore had been utilized, which pretty much indicates the development undertaken in the State in FY12. What happens to that balance money? And the plans? So discount the eloquent announcements and concentrate on what will affect your pocket.

·         Duty on LPG hiked by 5%; cooking gas thus becomes costlier

·         Duty on Beedi’s hiked to 12.5%; beedi’ gutka gets costly

·         CNG to get costly as duty hiked to 12.5%; public transport gets costly

·         Hike in sales tax for automobiles; Petrol vehicles by  2% and diesel by 4%; CNG kit cars to get cheaper

·         Chicken, stationery, dry fruits to get cheaper

·         Travel by air gets costlier; hike in duty for ATF only in Mumbai and Pune

·         Four new medical colleges to come up in the state

·         New super speciality hospital to come up in Mumbai

·         Road development gets impetus; to build 7810 kms  during the year

·         No hike in stamp duty as expected for the leave-license realty sector

·         Power generation gets Rs.1500 crore; to make Maharashtra ‘load-shed free’ by Dec 2012

Today, Tamil Nadu also presented its Budget and it too had more taxes. A quick look:

·         Alcoholic liquor of all kinds purchased, procured and brought outside from the State, other than foreign liquor, under certain sections of the TNVAT Act, will be taxed at 14.5% at the second point of sale.

·         Exemption granted from VAT (Value Added Tax) on vegetable oil for the turnover up to Rs 5 crore per year withdrawn; VAT now at 5% on sale of such vegetable oil.

·         Doubles the charges collected for blocking of fancy phone numbers

·         Revised Guideline Value to come into force with effect from April 1, 2012

·         Stamp duty reduced from 6 to 5%

·         VAT exemption for wheat and oats

·         Duty cut on e-bikes, sanitary napkins and diapers, CFL bulbs, insulin, hand-made locks and helmets.

Be it Maharashtra or Tamil Nadu, one fact remains constant – cost of living just went up further.