The Hon’ble Finance Minister, Mr. Dilip Walse-Patil, has announced the following changes in his budget speech :

Relief to Hotel Dealers :
Under Value Added Tax Act, the rate of tax under composition scheme for Hotels and Restaurants of three Stars and below is 8 per cent.  Representations have been received from time to time from Hotel Industry regarding this rate of tax being high.  I have dwelt on their representations and have decided to reduce the rate of tax under composition scheme for Hotels and Restaurants having gradation of three Star or below from 8 per cent to 5 per cent.

Tax on Liquor :
Indian made Foreign Liquor (IMFL), country liquor and imported liquor are taxable at the rate of 20 per cent.  The rate of Sales Tax is much more than 20 per cent in many other States.  It is proposed to increase the tax rate on these items from 20 per cent to 25 per cent.

The Notification will be issued by the Sales Tax Department, after the budget is passed by the Assembly.  Please take note of the above changes.

Yours faithfully,

S. M. KORDE
SECRETARY GENERAL.