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 16,2020

Mumbai, Mar 16: Shri Sai Baba sansthan trust on sunday appealed to devotees to postpone their visit to Shirdi for a few days in view of coronavirus outbreak in the country.

"As per the directives of the government, I request the devotees to postpone their visit to Shirdi for a few days," said Arun Dogre, Chief Executive Officer of Shri Sai Baba sansthan trust, Shirdi.

On Saturday, the Siddhivinayak temple located in Prabhadevi has instructed all its employees to wear masks, while hand sanitizers have been provided to everyone inside the temple.

Speaking to news agency,Siddhivinayak trust chairman , Adesh Bandekar had said, "We are providing sanitizers to all the devotees in the temple and where they stand in a queue holding the railings, are being cleaned in every 30 minutes."

Coronavirus, which originated in China's Wuhan city, has so far spread to more than 100 countries infecting over 1,20,000 people. In India, 107 persons, including foreign nationals were tested positive till March 15 at 12 pm.

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News Network
June 3,2020

Bengaluru, Jun 3: Lack of awareness on rail travel norms led to a tense situation on a Karnataka train as a female passenger was forced to disembark midway after her fellow passengers raised a hue and cry on seeing her knuckle stamped, mistaking it for a quarantine stamp, an official said on Tuesday.

"Many passengers on the train with the woman raised a hue and cry on seeing her stamped and complained to the TTE. She was later disembarked at Tumkur," a South Western Railway (SWR) zone official said.

The woman was travelling from Bengaluru to Belagavi as a transit passenger. Her status as such a passenger was stamped on her knuckle.

However, after some time, her fellow passengers observed her stamped hand and misunderstood that she was violating the quarantine norms.

Without realising that she was just a transit passenger who will be quarantined on reaching her destination, they created pandemonium and complained to the travelling ticket inspector.

"Following the public pressure, she was forcibly disembarked in Tumkur station," said the official.

Incidentally, the railways allows transit passengers to travel.

The official said the TTE would not have been aware of the rules and must have yielded to the passengers' pressure.

Later, the woman was allowed to board another train and reach her destination, the official said.

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March 28,2020

Bengaluru, Mar 28: The Karnataka government on Saturday said that the state run Indira Canteens would provide food packets free of cost to the poor and needy in the wake of the lockdown, the government said here on Saturday.

The canteens would operate in three schedules -from 7:30 AM to 10 AM, 12:30 PM to 3 PM and 7:30 PM to 9 PM, the government said in a public announcement

During the scheduled hours, street side vendors, labourers and poor would be provided food free of cost.

After the cabinet meeting on Friday, Chief Minister B S Yediyurappa had said food packets would be provided to the poor and needy with the help of some organisations through the Canteens and had sought the help of everyone in this regard.

The State-sponsored, subsidised 'Indira Canteens' as of now serves breakfast at Rs five and lunch and dinner at Rs 10.

The government asked people availing the facility to maintain cleanliness at the canteen and staff who serve food to compulsorily use masks and hand gloves.

It also said soaps and sanitizers should be made available at the canteens.

The government also asked people to maintain a minimum distance of one metre while standing in queue and take all precautionary measures.

Earlier, a day after announcing that food would be provided free of cost through the canteens for daily wagers, Yediyurappa on March 24 had said it has been decided that the canteens will not be opened, after realizing that it was leading to crowding, which drew criticism.

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