Calcutta, March 20: West Bengal has resurrected the infamous entry tax, making goods costlier when they reach the municipal areas of the state.

Unveiling the budget for the next financial year, finance minister Asim Dasgupta also laid out the roadmap for the introduction of value-added tax (VAT) — a uniform tax regime.

But Dasgupta went against the objective of the uniform system by reintroducing the entry tax which was abolished in 1995.

Dasgupta also announced a proposal to curtail unproductive non-plan expenditure, contain the growth of salary bill within 5 per cent and that of pension within 10 per cent. The initiatives won applause from industry associations which were otherwise not enthused by his budget.

Dasgupta has proposed the introduction of land tax — for both commercial and non-commercial purposes — to garner Rs 150 crore during the next financial year. He added that the government would mop up Rs 200 crore by imposing a tax on tobacco, sugar and textiles, which were so far not under the purview of states.

Entry tax will mean a special levy on goods entering the municipal areas. The rates will be announced later, but the government is expecting to reap Rs 500 crore through the reimposition.

Though the finance minister claimed that the reintroduction of entry tax would not affect the consumer prices, industry representatives said several household items would cost more. The products likely to bear the brunt of this tax are automobiles (both four-and two-wheelers) and auto components, television sets, air-conditioners and washing machines.

Products like edible oil, packaged foods, biscuits, chocolates, cigarettes, readymade garments, medicines, diagnostic products, sugar and tobacco are also likely to cost more. Most of these products are brought to the state from outside.

The entry tax, proceeds from which used to go to the municipal bodies, was abolished on April 1, 1995. Dasgupta said even after the abolition of entry tax, the municipal bodies were given grants in the same scale.

Maintaining tradition, he kicked off his budget speech by criticising the Central government’s economic policies “adopted at the behest of the IMF and the World Bank”.

But in a sharp deviation, Dasgupta — known for presenting zero deficit budgets — projected a Rs 793-crore deficit for 2003-2004. Explaining the jump in deficit in 2003-04, he said: “Much of it is due to increase in interest expenditure on small savings deposits. This year, we have decided to cut borrowings from small savings by Rs 3,200 crore.”