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
February 20,2020

Kalaburagi, Feb 20: All India Majlis-e-Ittehadul Muslimeen (AIMIM) leader Waris Pathan on Wednesday said that 15 crore Muslims can dominate 100 crore Hindus.

"The time has now come for us to unite and achieve freedom. Remember we are 15 crore but can dominate over 100 crores," said Pathan while addressing an anti-CAA rally here.

"They tell us that we have kept our women in the front - only the lionesses have come out and you are already sweating. You can understand what would happen if all of us come together," he said.

The CAA grants citizenship to Hindu, Sikh, Jain, Parsi, Buddhist, and Christian refugees from Pakistan, Afghanistan, and Bangladesh, who came to India on or before December 31, 2014.

Protests have erupted across the country against the Citizenship Amendment Act (CAA), the National Register of Citizens (NRC) and the National Population Register (NPR).

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News Network
June 4,2020

New Delhi, Jun 4: The Supreme Court on Wednesday sought response from Prajwal Revanna, the grandson of former Prime Minister HD Deve Gowda, on a plea challenging his election in 2019 from Hassan Lok Sabha constituency as a joint candidate of the Janata Dal Secular and the Congress.

A bench of Chief Justice SA Bobde and Justices AS Bopanna and Hrishiksh Roy issued notice to the returned candidate from the high-profile constituency on an appeal challenging the Karnataka High Court's order by which an election petition against his win was dismissed.

In the proceedings held through video-conferencing, the top court issued notice and tagged the appeal filed by G Devarajegowda for hearing with other similar pending plea filed by the BJP candidate on the issue.

Mr Devarajegowda in the plea said that his election petition was dismissed by the High Court on "procedural irregularities". The plea said that Mr Prajwal had resorted to unfair and corrupt practices and his election should be set aside.

It said the High Court did not consider the fact that by dismissing the election petition, it was running a risk of having a representative in parliament who has not got the maximum number of valid votes.

The petitioner, an advocate by profession, sought a declaration of rival BJP candidate, A Manju, as the winner for having secured the maximum number of valid votes.

A separate appeal was earlier filed by Mr Manju against the High Court order and the top court had already issued notice to the retuned candidate on that.

Mr Manju had challenged the 2019 election of Mr Prajwal on the ground that there was allegedly non-disclosure of assets held by him in his election affidavit.

Mr Prajwal was declared winner with 6,76,606 votes. Mr Manju came first runner-up with 5,35,282 votes.

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News Network
January 27,2020

Mysuru, Jan 27: Chief minister BS Yediyurappa on Sunday refused to field questions on the state’s finances, merely saying his budget on March 5 will do the talking. The question came in the wake of Siddaramaiah, leader of the opposition, claiming recently that the state’s coffers were dry and its finances were in the doldrums.

However, Yediyurappa insisted the state’s finances were sound and it will be better once promises made by the business community during his trip to Davos turn into concrete investment.

“I will present the budget for 2020-21 on March 5. People will then know about the state’s financial position,” Yediyurappa said during a visit to Suttur Mutt on Sunday. “I will answer Siddaramaiah’s comments during the forthcoming budget session of the state legislature. The Davos meet I attended will benefit the state immensely. It will bring huge investments that will promote industry and agriculture growth and various job-generation activities.”

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