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Karnataka promises cheap farm credit, tax sops in 2009-10 budget
February, 21st 2009

Proposing additional resource mobilisation to mop up Rs 100 crore, offering tax relief up to Rs 400 crore and extending farm credit at three per cent, Karnataka Chief Minister B S Yeddyurappa on Friday presented the state's 2009-10 budget which has a deficit of Rs 43.08 crore.

Karnataka slashed sales tax to four per cent from 12 per cent on vehicles driven by electricity including cars, vans and two-wheelers to promote eco-friendly vehicles in his budget proposals presented to the state assembly.

The government also decided to reduce stamps and registration, from 7.5 per cent to six per cent hoping to give a boost to property registration activities, while enhancing fee for duplicate registration from Rs 50 to Rs 500, besides enhancing fee levied on lease agreement registration.

Offering another sop to the government employees, the government announced hike in HRA, brought down sales tax on tamarind, soapnut, areca from four per cent to two per cent and exempted tax on footwear costing less than Rs 100. Yeddyurappa, presenting the budget for the fourth one in a row and second after becoming the Chief Minister, sought a vote on account for four months till July 31.

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