Karnataka fears massive revenue loss after currency chaos

November 16, 2016

Bengaluru, Nov 16: The Centre's move to demonetize high value currency notes threatens to derail Karnataka's revenue collection this financial year. Officials fear that the state might miss its revenue target by at least Rs 5,000-Rs 15,000 crore for the current fiscal. The move has already affected liquor sales, property transactions, and sale of new and used vehicles.

Untitled-1"We are still assessing the impact and will get a clear picture by the weekend. We are certainly expecting some impact,'' said ISN Prasad, additional chief secretary, state finance department. "The government's revenues have taken a severe beating following the demonetization move. Whatever taxes were supposed to come to the state, including commercial taxes, sales taxes and all the revenues have been hampered. It will certainly have a huge impact on this fiscal's tax collection," said another finance department official.

The government's excise department has been the worst hit. The sale of foreign liquor has come down drastically in the past few days. A senior excise department official said: "Most of the excise revenue come from the sale of Indian Manufactured Foreign Liquor. Officials at government outlets have claimed that the sale has gone down by at least 50%."

The government had fixed an ambitious revenue target of Rs 16,510 crore for the excise department this year following a 25% hike in taxes on liquor. The government has collected only about Rs 7,500 crore so far. "People have stopped buying liquor, especially the expensive ones, due to shortage of high-value currency," added the official.

The revenue target for the stamps and registration department had been fixed at a higher Rs 9,100 crore for the current fiscal. Most of this amount comes from revenue layouts through stamp duty and property registration, which has completely stopped since November 8. "Bengaluru is a big market for secondary real estate, which traditionally works on 60:40 white and black money ratio. Ban on transaction of black money has badly hit property registration," said a senior official of the stamps and registration department.

Comments

Althaf
 - 
Wednesday, 16 Nov 2016

Not only in karnataka All over india it will effect.

Skazi
 - 
Wednesday, 16 Nov 2016

let the Govt reduce the Value of lands for registration purposes... then the govt will get back the revenues.... as the buyers will come forward in the real estate business .....
The govt does not apply its mind while fixing the land values ... It goes by survey no.... whether the site has road connection or not,, the govt value is same for all sites ....

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News Network
July 4,2020

Bengaluru, Jul 4: A case has been filed against a man who posed himself to be the PMO's National Security Council 'youth advisor' during his visit to Bengaluru.

According to the police, Ankit Dey (22 yrs) who had visited Bengaluru between 16 to 20 June and for his stay at ITC Gardenia, posed himself as a youth advisor to National Security Council at PMO.

As per the information given by the hotel staff, the police department had communicated with the PMO. They got clarification that there is no such person designated in the Prime minister's office. A complaint has been filed in Cubbon Park police station.

"The man found to be 22-year-old as per the identity shown in the hotel, left his visiting cards. Although he did not ask for any discount in the hotel," said Police.

A senior police officer said, "A criminal case has been filed against the accuse 'Ankit Dey' under the section IPC 420 (cheating and dishonesty), 465 (forgery), 468 (forgery for purpose of cheating), 471 (using as a genuine forged document), 417 (cheating).

Police have started its work to find him as per the clues we have got. At this point of time, we can not reveal more details," Officer said. 

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News Network
July 15,2020

Bengaluru, Jul 15: With the state capital along with a few districts under lockdown to control the spread of Covid-19, Karnataka Home Minister Basavaraj Bommai on Wednesday said the measure was important to break the chain and people seem to have understood its importance.

Appealing for cooperation from the people, he asked them not to make it inevitable for police to use force in implementing the lockdown. "Traffic movement is less, there is a lockdown atmosphere everywhere, I feel that people have understood the importance... cooperation is required. I appeal to the people, if this lockdown has to be effective it has to be voluntary, only then we can control the rapid spread of coronavirus," Bommai said.

Speaking to reporters here, he said this lockdown is important, last time the infection was not up to this level. "This time areas that have a high number of infections- about five districts and Bengaluru city are going for lockdown. People have understood that this lockdown is to break the chain," he said. "Please don't make it inevitable for police to use force," he added.

Bengaluru urban and rural areas are under "complete lockdown" since last night at 8 pm and it will be effective till 5 am on July 22.

Following Bengaluru urban and rural, administrations in several districts like Dharwad, Dakshina Kannada, Kalaburagi (only in Urban areas), Bidar, Raichur (in Raichur city and Sindhanur) and Yadgir too have announced lockdown.

Noting that Police have taken all necessary strict measures to enforce lockdown in Bengaluru urban and rural districts by restricting the movement of vehicles and people, Bommai said barricades have been erected at various places and flyovers have been shut. People have been allowed to purchase vegetables and groceries till 12 noon, he said.

The government has warned of action in case of any violation of the lockdown rules. As of July 14 evening, cumulatively 44,077 Covid-19 positive cases have been confirmed in the state, which includes 842 deaths and 17,390 discharges. Bengaluru Urban district tops the list of positive cases, with a total of 20,969 infections.

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July 1,2020

Bengaluru, Jul 1: Karnataka government has announced a complete lockdown on Sundays till August 2. "There shall be complete lockdown on Sundays from July 5 and followed by next four Sundays till August 2," stated the government. 

"However, essential activities allowed during night curfew will be permitted during Sunday lockdown too. Marriages already fixed on Sundays will be permitted as per norms," also said.

The government further ordered, "All government offices, Boards and Corporations, except those operating and maintaining essential services, shall remain closed on all Saturdays till the second week of August."

Employers should ensure that the Aarogya Setu app is downloaded and used by the employees. The app enables the identification of potential risk of infection,

Regarding Sunday Lockdown, it said, there shall be complete lockdown on Sundays with effect from 5th July, 2020, and followed by next 4 Sundays till 2nd August, 2020.

However, the essential activities as above permitted during Night Curfew shall be permitted during the Sunday lockdown also.

Lockdown in Containment Zones in Karnataka

Lockdown will continue to remain in force in the Containment zones. In the Containment Zones, only essential activities shall be allowed. There shall be strict perimeter control to ensure that there is no movement of people in or out of these zones, except for medical emergencies and for facilitating supply of essential goods and services. In the Containment Zones, there shall be intensive contact tracing, house-to-house surveillance, and other clinical interventions, as required.

All vulnerable persons, individuals above 65, persons with comorbidities, pregnant women and children below the age of 10 years are advised to stay at home, except for health and essential purposes.

Karnataka saw 947 new coronavirus cases, including 503 cases from Bengaluru Urban, taking the total number of cases to 15,242. Death toll has jumped to 246 after 20 deaths were reported on Tuesday, according to the data released by Union Health Ministry. 

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