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
April 22,2020

Mangaluru, Apr 22: City Police Commissioner Dr P S Harsha, on Wednesday, interacted with families of Covid-19 warriors of the Police Department through a special video conference to infuse confidence in them.

He spoke to the family members of the police personnel who, along with ASHA workers, are monitoring the home quarantined people and even assist them in supplying essentials and medicines.

Most of the family member of the police personnel were of North Karnataka origin and the Commissioner asked them to stay safe by staying at home and explained to them the good work done by their family members in the Police Department.

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News Network
February 12,2020

Kathmandu, Feb 12: Nepal has suspended the licence of a mountainous resort for three months due to poor security management and managerial weakness at the hotel where eight Indian tourists, including four minors, died of possible asphyxiation, according to media reports.

Kathmandu: Nepal has suspended the licence of a mountainous resort for three months due to poor security management and managerial weakness at the hotel where eight Indian tourists, including four minors, died of possible asphyxiation, according to media reports.

Tragedy struck a group of 15 tourists from Kerala when eight of them died on January 21 due to possible asphyxiation after they fell unconscious probably due to a gas leak from a heater in their room at a mountainous resort in Makwanpur district.

The tourists were airlifted to HAMS hospital here where they were pronounced dead on arrival. Makwanpur police said the victims might have fallen unconscious due to asphyxiation.

The Department of Tourism on Sunday imposed a ban on the operation of Daman-based Everest Panorama Resort for three months based on the report submitted by a probe committee formed to investigate the death of the Indian tourists from Kerala, the Kathmandu Post reported on Tuesday.

The department decided to shut down the resort as the report submitted by a probe committee pointed out poor security management and managerial weakness at the resort for the incident, it said.

The Ministry of Culture, Tourism and Civil Aviation had formed the probe committee under Surendra Thapa, the director of the Department of Tourism. After a field inspection, the committee had submitted its report a few days ago, pointing to the shortcomings of the resort.

During the investigation, the committee found the resort had not been following the recommended safety measures and was providing substandard services to its guests, The Himalayan Times reported.

Moreover, the committee discovered that the resort had not fulfilled the criteria set by DoT to be categorised a 'resort', it said.

Mira Acharya, director of DoT was quoted as saying by the report that the resort's operations have been halted as per Section 15 of Tourism Act-1979.

"If the resort owner wishes to resume services after three months of suspension, the resort should be upgraded as per the Hotel, Lodge, Restaurant, Bar and Tourist Guide Rules-1981 and also meet the criteria mentioned in a notice published in the Nepal Gazette under the title 'Hotel Classification and Criteria'," Acharya said.

She added that the resort would also have to undergo the Environment Impact Assessment to get the permission from DoT to resume operation.

Meanwhile, the resort management has said that they will work towards meeting the standards fixed by the department and run the resort efficiently.

"We will work towards meeting the standards fixed by the department and run the resort efficiently. We are saddened by the tragic incident. We will ensure that such incidents don't occur in the future,” said Sudesh Gautam, the operator of the resort was quoted as saying by the Kathmandu Post.

The group, after travelling to Pokhara -- a popular mountainous tourist destination -- was on their way back home and stayed at Everest Panorama Resort in Daman.

Those who were killed were Praveen Krishnan Nair, his wife Saranya Sasi and their three children and Ranjith Kumar Adatholath Punathil, his wife Indu Lakshmi Peethambaran Ragalatha and their son.

Everest Panorama Resort was established 28 years ago in Daman Simbhajyang area, a tourist destination in Bagmati Province. The tourist numbers, according to Thaha Hotel Association, have plunged after the tragic accident of January 27.

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News Network
March 31,2020

Kasaragod, Mar 31: The latest incidents of critically-ill patients dying due to lack of medical attention has been a cause of concern for the people here who had largely been depended on hospitals in Mangalore.

However the lock down has hindered follow-up treatment for these critically ill as the Karnataka authorities has been steadfast in restricting entry into their land.

The people of Kasaragod has been largely depended on the medical facilities in Mangalore for critical illness care. It was the gross inadequacies in critical healthcare in the district besides rather-easy proximity to nearby and bigger town that many residing on the north-east of the district have since long been making it to Mangalore for treatment of critical illness like cancer, dialysis and the alike.

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