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 25,2020

Belagavi, Feb 25: Left Parties will launch countrywide door-to-door campaign from March 1 to 23 against Citizenship (Amendment) Act (CAA), National Population Register (NPR), National Register of Citizens (NRC), Communist Party of India (M) General Secretary Sitaram Yechury said on Tuesday.

Addressing a press conference here, he said that CPI (M) and other Left parties were participating in the awareness programme that will conclude on March 23, on the martyrdom day of Bhagat Singh, Chandrashekar and Rajguru.

"Till now 13 states have expressed their opposition for NRC and will not implement it, which means more than fifty per cent of country will not have it," he added.

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News Network
March 9,2020

Bengaluru, Mar 9: The political crisis faced by Kamal Nath government in Madhya Pradesh appears to have accentuated with 13 party MLAs and six ministers reported to be in Bengaluru.

The developments have come amid factional differences in the party unit and at a time the party has to finalise its Rajya Sabha candidates from the state.

Sources said the number of Congress MLAs who were in Bengaluru had gone up to 19 and one more MLA expected to reach Bengaluru by Monday night. They said the MLAs have come in batches and include six ministers from Madhya Pradesh.

The developments came on a day state chief Chief Minister Kamal Nath met party chief Sonia Gandhi and discussed the political situation in the state.

The sources said that MLAs are likely to be shifted to a resort on the outskirts of Bengaluru.

According to the sources, BJP Mahadevpura MLA Arvind Limbavali has been in touch with the Congress MLAs. They said 16 MLAs were brought at HAL airport Bengaluru by a special flight and were staying in a hotel at present.

The session of Madhya Pradesh assembly will begin on March 16 and the BJP may bring no-confidence motion against the Kamal Nath government.

Kamal Nath had said after his meeting with Gandhi that Congress MLAs who were reportedly missing have returned and had informed him that they were on 'tirth yatra'.

"Congress MLAs came back and said to me that they went on' tirth yatra (pilgrimage)".

The Congress has accused the BJP of trying to topple the party government. Party leader Digvijaya Singh had earlier alleged that BJP leaders Shivraj Singh Chouhan and Narottam Mishra were offering bribes of Rs 25-35 crore to Congress MLAs in order to bring down the Congress government in the state. The BJP had refuted the allegations.

In 2018 assembly elections, Congress won 114 seats in the 230-member Assembly and formed the government with the support of four Independent MLAs and two BSP MLAs and a legislator from the Samajwadi Party (SP). The BJP had secured 109 seats in the state assembly.

Last week,Madhya Pradesh Labour Minister Mahendra Singh Sisodia had warned that the state government will face a crisis if it "ignores or disrespects" party leader Jyotiraditya Scindia.

Scindia had said last month that he will not hesitate to hit the roads if promises made in a manifesto by Kamal Nath-led government in Madhya Pradesh were not fulfilled.

Kamal Nath had responded to the remarks saying, "To utar jayein" (Let him hit the streets if he wants to).

Congress MLA Bisahulal Singh, who was "missing" for the past few days, returned to Bhopal on Sunday and said he had gone on a pilgrimage.

Independent MLA Surendra Singh said on Monday that he was hoping to become a minister in Madhya Pradesh government soon.

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News Network
March 31,2020

Kasaragod, Mar 31: Two more Kasaragod natives lost their lives on Monday due to blockade of the interstate border by Karnataka police in the wake of outbreak of novel coronavirus.

They could not get emergency health care as the Karnataka police stopped the ambulance carrying them to a hospital in Mangaluru at the border.

Another critically-ill person, who was sent back by Manguluru hospital authorities on March 23 for being a Kasaragod native, also died on Monday.

This is the fifth such case in many days.

The deceased are Madhavan, 50, Ayesha, 55 and Aziz Haji, 61 respectively.

All three of them lived near the Karnataka border.

Madhavan, who hailed from Thummanattu in Manjeswaram, died enroute to Kanhangad hospital after being denied entry to cross over to Karnataka. He had an acute bronchial attack.

Udyavar native Ayesha, an asthma patient, was referred to the Mangaluru Hospital by the hospital authorities at Uppali. When the authorities stopped her at the border, she was taken to the Kanhangad hospital. However, she died before reaching the hospital.

Aziz Haji, from Nayabazar Cherugoli MA Cottage at Uppala, was allegedly refused entry into a Manguluru Hospital on March 23 on account of being a Kasaragod native. Haji was a dialysis patient at the hospital. “We were unable to contact his doctor at the time,” his relatives said. Haji, who was on the ventilator, lost his life Monday morning.

One more from Kerala dies as Karnataka police stop ambulance at border
Kunjathoor native Abdul Hameed and Bandwal native Fathima also lost their lives due to the closing of the interstate border.

The district authorities has appealed to the Government to intervene in the matter and influence Karnataka as to lift a ban in crossing over for ambulances carrying critical patients.

The people of Kasaragod are largely dependent on the medical facilities in Mangaluru for critical illness care.

The Kasaragod MP, Rajmohan Unnithan has said he would move the Supreme court against this.

Kerala Chief Minister Pinarayi Vijayan has already taken up the issue with the Centre.

Kerala HC takes up issue with Karnataka AAG

The Kerala High Court on Monday sought the views of the Advocate General of Karnataka on the issue of the government of the neighbouring state blocking its borders with Kerala.

Considering a Public Interest Litigation (PIL) filed by Kerala High Court Advocates Association, seeking a direction for opening the roads, a bench comprising Justices A K Jayasankaran Nambiar and Shaji P Chali requested the Advocate General of Karnataka to join the hearing at 11 am on Tuesday through video conferencing.

The Court orally observed that the blockades erecting embankments on the inter-state roads would affect the people's right to life.

The Karnataka government blocked the state highway with to prevent movement of vehicles carrying essential goods and people seeking emergency treatment at hospitals in the city of Mangalore bordering Kasaragod.

With 97 infected patients, Kasaragod has the largest number of COVID-19 cases in Kerala. 7,437 people are under observation in the district.

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