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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April 27,2020

Mangaluru, Apr 27: Two more people including an elderly woman have been tested positive for the novel coronavirus in Dakshina Kannada. 

With this the total number of covid-19 cases in the district reached 21, though most of them have recovered and returned home. 

In its today's bulletin, the health and family welfare department confirmed that a 45-year-old man and his 80-year-old mother tested positive for the deadly disease. 

It is learnt that one of them had undergone treatment at a private hospital where a woman from Bantwal, who died of covid-19, was being treated for breathing difficulties, before she was shifted to Wenlock Hospital which is now converted into covid-19 hospital.

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News Network
July 6,2020

Mandya, Jul 6: Mandya Lok Sabha MP Sumalatha Ambarish tested positive for COVID-19 on Monday, July 6. Confirming the same, she tweeted, “It (test result) is positive with very mild symptoms and I have been advised home treatment,” she confirmed.

“I had developed mild symptoms of headache and throat irritation on Saturday, July 4. I decided to get myself tested as I might have been exposed to COVID-19 during the course of my constituency duties and tours. The results arrived today. It is positive with very mild symptoms and I have been advised home treatment,” she said in a tweet.

The MP sad she was going through the prescribed treatment as per her doctor’s instructions. “By God’s grace, my immunity level is strong and I am confident that I will soon get through this situation with your support,” she said, adding that she had already given the authorities the details of the persons who she might have come in contact with.

“But I would still urge those who have come in contact with me, if you have any symptoms, to get tested immediately. Let’s win the war against COVID-19,” she further said. Sumalatha had been involved in COVID-19 activities in her constituency which has recently seen a spike in the number of cases.

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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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