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 11,2020

Bengaluru, Apr 11: The coronavirus-driven lockdown will continue for another 15 days, but relaxations will be allowed in a graded manner, Karnataka Chief Minister B S Yediyurappa said after a four-hour-long video conference with Prime Minister Narendra Modi on Saturday.

“Agriculture and industrial sectors will be given relaxation. Government offices will be allowed to work with partial strength. But the PM said detailed guidelines will be issued in two days,” Yediyurappa said, briefing reporters. 

“Importantly, the lockdown for the next two weeks will be different than how it was in the past three weeks. The Centre, keeping in mind economic activities, especially agriculture, industry and employment of labourers, the Centre will tell us what needs to be done,” the CM said.
 
According to Yediyurappa, PM Modi told all chief ministers that the next 2-3 weeks will be critical. “The next few weeks will decide whether or not we have succeeded. If the situation worsens, we have to face the crisis,” Yediyurappa said, quoting Modi. 

Apparently, Modi sought details on the COVID-19 situation from 12-13 states where the situation is grave. “He did not take a report from Karnataka,” Yediyurappa said. “This morning, seven new cases were reported in the state, taking our tally to 214. Nationally, we were in the third place; we’re now 11th,” he said, hailing the efforts of officials involved in fighting the pandemic. 

The CM said it was “inevitable” to continue the lockdown for another 15 days. “But for citizens to get essential supplies, there’s no bar on them going by walk alone. Also, we will see to it that agricultural activities are not affected anywhere,” Yediyurappa said.

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April 28,2020

Bengaluru, Apr 28: Former Chief Minister Siddaramaiah on Tuesday demanded that the Karnataka government announce a "special package" for unorganised sector workers, street vendors and autorickshaw drivers, among others, all daily wagers whose lives are affected by the COVID-19 lockdown. "..a special package needs to be announced to this section of people, this is the demand," Siddaramaiah, who is also Leader of the Opposition in the state assembly, told reporters here.

Alleging that the government has failed to control the spread of coronavirus, he said it is the government's responsibility to take care of the basic needs of those from the unorganised sector, whose lives have been impacted by the lockdown. "It is the duty of the government and they should do it immediately. The package should also be announced. I will hold discussions with leaders of other opposition parties like JD(S), CPI, CPI(M) and BSP in this regard and also on trouble faced by farmers," he added. Alleging discrimination in supply of food packets and ration kits, Siddaramaiah said it was being supplied properly only in constituencies represented by BJP legislators.

"Politics is being played out in supply of food materials to the needy, keeping corporation elections in mind.... We don't want to do politics at this point in time as there is lockdown. If things continue to be the same after the lockdown ends, we will protest on the streets," he said.

Siddaramaiah on Tuesday interacted with representatives of auto rickshaw and cab drivers, street vendors, barbers, unorganised workers organisations, among others, to understand the difficulties faced by them during the lockdown and to know whether help from the government has reached them. He said most of them don't have work and it has become difficult for them to lead their normal lives.

They raised several issues like auto and cab drivers being unable to pay road tax and EMI, he said, adding that he would write a detailed letter to the Chief Minister in this regard The former Chief Minister pointed out that there is about 21 lakh registered organised workers, 1.32 crore lakh unorganised workers and also agriculture labourers in the state.

"Among organised workers only 12.5 of the 21 lakh are said to be getting Rs 2000, that too from the Employees Welfare Fund, while others could not get any money, citing reasons like they have not renewed it," he said.

On the other hand, unorganised sector workers don't get money and were also not getting proper food or ration kits, he alleged Though the labour department claimed that it was supplying one lakh food packets and 1.5 lakh ration kits, as also corporations, there were leakages and it was not reaching the beneficiaries properly, he said.

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News Network
March 27,2020

Belgaum, Mar 26: The police on Thursday thrashed people who had gone to offer prayers at a mosque despite the nationwide lockdown in force.
In a video, the police personnel can be seen thrashing the people with batons while they were leaving after offering prayers at a local mosque here.
In another incident in Rajasthan's Pratapgarh, the police made few youngsters hop along a road and even gave the 'murga,' punishment to a few of them for violating the restrictions.
Similarly in Uttar Pradesh's Budaun, the police made people hop along a road with their bags strapped on their backs as a punishment. The people were possibly going to their native places.
In the video of the Budaun incident, a few men can be seen being made to hop along the road with a stick-wielding policeman keeping a watch.
SSP Budaun told ANI that an investigation is being conducted into the incident and expressed an apology for the police's behaviour.
Prime Minister Narendra Modi had announced a 21-day countrywide lockdown to check the spread of coronavirus, saying that "social distancing" is the only option to deal with the highly contagious disease.

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