State governor PC Alexander had to issue an ordinance as the government failed to table the taxation bill suggesting various resource-mobilisation measures during the five-week budget session of the state legislature, ended April 24.

A sales-tax hike on liquor served in permit rooms would fetch Rs 150 crore, while a revision in professional tax would generate an additional Rs 120 crore. The rise in professional tax would also lead to an increase in revenue from Rs 380 crore to Rs 500 crore.

The revised professional-tax structure is given as follows : salary and wages earned by those whose monthly levels a) do not exceed Rs 2000 - nil, b) exceed Rs 2,000 but do not exceed Rs 2,500 - Rs 30 per month, c) exceed Rs2,500 but do not exceed Rs 3,500 - Rs 60 per month, d) exceed Rs 3,500 but not exceed Rs 5,000 - Rs 90 per month, e) exceed Rs 5,000 but do not exceed Rs 10,000 - Rs 120 per month and f) exceed Rs 10,000 - Rs 150 per month.

The government has increased the sales tax to 4 per cent on wet dates and on computers from 2 per cent to 4 per cent. It had imposed additional sales tax, based on turnover, on Udipi hotels, while that on sabudana was cut from 6 per cent to 4 per cent.

The ordinance has made provisions in the: a) the Bombay Electricity Duty Act, 1958, to provide for duty levy on consumption charges, which was to be inclusive of the fuel-adjustment charge, energy charges, maximum-demand charges and the fuel-cost adjustment; b) Bombay Sales Tax Act, 1959, to provide for voluntary registration, abolish tax levy on credit-card sales and provide for revision of rates and concessions in tax rates; c) Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975, to give effect to budgetproposals regarding revision of rates; d) Maharashtra Tax on Luxuries Act, 1987, to give effect to the proposals regarding the revision of rates; and e) Maharashtra Sales Tax on the transfer of property in goods involved in the execution of Works Contracts (re-enacted) Act, 1989, to give effect to the proposals regarding new composition schemes announced in the budget speech.