Cabinet hikes tax liability on Basmati purchase to Rs 50cr

BHOPAL: Madhya Pradesh cabinet under the leadership of chief minister Shivraj Singh Chouhan on Tuesday accorded ex-post facto approval to the decision of increasing tax liability limit on purchase of Basmati paddy from Rs 10 crore to Rs 50 crore. This is a path-breaking decision in the interest of paddy growers and traders especially on a day when Union minister for food and public distribution Ram Vilas Paswan was in the state capital.
Madhya Pradesh government has also approached the Narendra Modi led government at the Centre with a request to include the state in the list of Basmati rice producers. On Sunday, chief minister had directed the administration to issue a notification to increase the tax liability limit which would be for the benefit of Basmati paddy growers. While farmers would be encouraged to grow Basmati, traders would find it attractive to purchase and market the same with an increased tax liability limit of Rs 50 crore.
In another important decision, the cabinet also approved swapping of land allotted to All India Institute of Medical Science (AIIMS) Bhopal. According to the decision, 11.32 acre land of Pipaliya Pende Khan in Huzur tehsil of Bhopal district transferred to AIIMS will be swapped with 11.32 acre land of the state government situated in villages Barkhera Pathani and Pipaliya Pende Khan.
Cabinet decided to extend lease period of 541 acre land allotted to Borlog Institute in Jabalpur from 30 years to 99 years. Due to extension of lease period on the request of Central Government’s Institute of Agriculture Extension and Research, there would be no problem in future about establishment and functioning of the institute.
Government also decided to exempt director Ravi Kumar’s film “A Prayer for Rain” from tax under provisions of the Luxury, Entertainment and Advertisement Tax Act. State cabinet also decided to extend contract period of paramedical staff posted in Public Health & Family Welfare Department till March 31, 2015.