Guwahati, Mar 12 (PTI): A Rs 293.44 crore deficit budget with no fresh tax proposals was presented in the Assam assembly by chief minister Tarun Gogoi on Monday.

Gogoi, who also holds the finance portfolio, said the opening deficit of Rs 1,079.11 crore in 2012-13 financial year was expected to improve with an estimated closing deficit of Rs 293.44 crore.

In a major concession, the government has reduced the Value added tax (VAT) rate from 13.5 per cent to five per cent for items including alcohol, honey, glucose and coal tar.

The government has given tax concession and other benefits to the industries as per the Industrial and Investment policy for rapid industrialisation of the state, Gogoi said.

Special incentives to the industries having mega status was also given to promote employment generation and benefits to the consumers, he said.

With the Guwahati Tea Auction Centre (GTACC) facing stiff competition, the government has proposed to reduce the rate of tax on auction sale from the existing one per cent to 0.5 per cent and the rate of tax on sale of tea through private arrangement from existing two per cent to one percent

The chief minister announced the government's plans to give tax concession and other benefits to the industries as per the Industrial policy of 2008.

In order to encourage tourism which has “great scope in the state”, Gogoi announced exemption of luxury tax up to five percent from room tariff of less than Rs 1000 and rationalise the rate resulting to the loss of Rs three crore to the state exchequer.

The chief minister announced a special package of Rs 100 crore for all round development of flood ravaged Dhemaji district and a similar amount to set up a “Mini Assam” at Sonapur near Guwahati to showcase the culture of the state.

Gogoi announced a proposal to set up a digital photo and film archive to be named after Dadasaheb Phalke award winner Bhupen Hazarika at a cost of Rs 1.5 crore.

In the tourism sector, the chief minister announced that tourists circuits of Holongpar-Lachit Maidam-Nambar will be set soon while top priority will be given to create tourist infrastructure.