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
March 30,2020

Kochi, Mar 30: Kerala High Court, while hearing a petition filed against Karnataka's decision to block the border with Kerala, on Monday said that no lives should not be lost in the name of fighting coronavirus.

Kerala High Court also said that "the current problem should be resolved amicably. Both the Union government and the Karnataka government should rise to the occasion."
The Central government has informed Kerala High Court that the movement of goods and medical services qualify under essential services, which is permitted despite the lockdown, and added that directions have been issued to give priority to the movement of such goods and services.
Meanwhile, the Karnataka government has sought a day's time to clarify their stand.

The matter will be taken up for further hearing via video conference tomorrow.
Kerala government has submitted that the action of Karnataka government to close the border is illegal as all the national highways in the country come under the jurisdiction of the National Highway Authority.

Meanwhile, Congress MP Rajmohan Unnithan has also approached the Supreme Court seeking directions to open the Karnataka-Kerala border to allow movement of ambulances and other emergency vehicles for the transport of essential items to Kerala.

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News Network
August 2,2020

Chitradurga,  Aug 2: Said to be 110-years-old, a grand old woman Siddamma was discharged on Saturday from a COVID Hospital in Chitradurga after recovering from the novel coronavirus.

According to Dr Basavaraj, District Surgeon, Chitradurga, the woman had tested positive for the disease on July 27.

After her recovery, the frail woman dressed in a sari was seen being wheeled out from the hospital.

As many as 5,172 new COVID-19 cases and 98 deaths were reported in Karnataka on Saturday, taking the state's count of coronavirus cases to 1,29,287.

The active cases in the state now stand at 73,219 while 53,648 people have been discharged.

"5,172 new COVID-19 cases and 98 deaths reported in Karnataka in the last 24 hours, taking total cases to 1,29,287 including 53,648 discharges and 2,412 deaths. 

The number of active cases stands at 73,219," said State Health Department.

So far, a total of 2,412 people have succumbed to the virus in the State.

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May 21,2020

Bengaluru, May 21: Chief Minister B S Yediyurappa today slammed Law Minister JC Madhuswamy for yelling at a woman farmer in Kolar, an incident that attracted widespread criticism. 

The incident happened on Wednesday when Madhuswamy, who is also the minor irrigation minister, was inspecting the Koramangala-Challaghatta (KC) Valley project, under which Bengaluru’s sewage is treated and pumped into lakes in Kolar. 

During his visit, farmer Nalini Gowda questioned Madhuswamy on the encroachment of the 1,022-acre S Agrahara lake. At one point, Madhuswamy lost his cool and yelled, “Aye! Shut your mouth, rascal,” and asked the police to take her away. Before this, Madhuswamy told her, “Make a request. I’m a very bad man. You can only air your grievance. Don’t command us.” 

A video of this exchange was aired by news channels. 

“What (Madhuswamy) said is not right. I have warned him. None can forgive such an explicit manner of talking with a woman. That, too, behaving like that being a minister doesn’t bode well. I will talk to that woman also and I’ll ensure this doesn’t happen again,” Yediyurappa told reporters.

The incident has come as a shot in the arm to the Opposition Congress, which is already attacking the Yediyurappa administration on the COVID-19 crisis. Condemning Madhuswamy’s behaviour, Leader of the Opposition Siddaramaiah demanded an apology and asked Yediyurappa to sack him from the Cabinet. 

Karnataka Pradesh Congress Committee (KPCC) president D K Shivakumar said it was unbecoming of Madhuswamy to behave like that being a senior minister. “People will ask us questions and express their problems, naturally. What’s important is how we handle ourselves. Be it a woman or anyone, they come to us because we’re into public service. Calling them ‘rascal’ and things is not right. Maybe there was some irritation, but I agree with (Siddaramaiah) that he should be dropped from the Cabinet,” he said.

On his part, Madhuswamy said he felt intimidated. “If I have hurt the feelings of any woman, I will certainly apologise,” he said. “But citizens should realise, we go to their villages to ask about their problems. If they start abusing us publicly, how can we work? My secretary and I heard her for five minutes and then told her that we know our responsibility. We asked her to close the issue. She didn’t stop and I got tempted (sic),” the minister said.

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