Guwahati, Aug. 11: High-end cars will cost more in Assam while low-salaried people have been offered tax relief in the state budget for 2014-15 fiscal.
Chief minister Tarun Gogoi, who also holds the finance portfolio, however, did not mention cars in which price bracket would be considered “expensive luxury cars”.
“A large number of affluent people are buying expensive and very expensive luxury cars. I want to apply higher rate of taxes (motor vehicle tax) on such vehicles compared to the less expensive cars and motorcycles,” Gogoi said in his budget speech in the Assembly today.
“I have advised transport department to come up with a duly calibrated progressive taxation structure for this purpose,” he said.
Unlike those planning to buy premium cars, he gave low-salaried people a reason to smile as he raised professional tax exemption limit from Rs 40,000 per annum to Rs 1,20,000 per annum.
Thus, a person getting gross salary up to Rs 10,000 per month will not have to pay any professional tax. Those with more than Rs 10,000 but less than Rs 15,000 a month will have to pay Rs 150 per month. Those getting Rs 15,000 or more but less than Rs 25,000 per month shall have to pay Rs 180 per month and those getting Rs 25,000 or more per month will have to pay tax at Rs 208 a month.
“Similar slabs shall be applicable for other professionals,” Gogoi said. Medical practitioners, technical or professional consultants, legal practitioners and other professionals having an annual gross income of more than Rs 1,20,000 but less than Rs 1,80,000 shall have to pay Rs 1,800 per year.
Professionals having an annual gross income of Rs 1,80,000 or more but less than Rs 3,00,000 shall have to pay Rs 2,160 per year. Those having an annual gross income of Rs 3,00,000 or more shall be liable to pay tax at the highest slab of Rs 2,500 per year.