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 30,2020

Bengaluru, Mar 30: Army personnel on Sunday distributed food packets and other essential items to the needy and sprayed Calcium Hypochlorite solution in Koramangala and Vanarpet areas amid the coronavirus lockdown.

The Central government had on Tuesday announced a 21-day lockdown in a bid to stop the spread of the deadly virus that has left several thousand dead globally.

A total of 979 confirmed cases of COVID-19 have been reported in India, informed the Ministry of Health and Family Welfare on Sunday.

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News Network
June 15,2020

Bengaluru, Jun 15: As the central government has not allowed reopening of gyms in the country amid COVID-19 pandemic, many gymnasiums in Bengaluru are on the verge of closing or sale.

Rakshith Gowda, a gym owner and secretary of gym owners association told ANI that they are not even able to pay rent of the premises which is Rs 60,000 to 1 lakh per month.

"The condition of the owners of the gym have worsened. We have to pay a minimum of Rs 60,000 - 100,000 rent of the building and for past 4 months we couldn't pay the rent, salary to trainers and cleaners, EMI," Gowda said.

"I urge the government to take necessary steps to bring up the gym sector as they have allowed opening up of shops, temples, malls. We urge the government to take proper steps in the interest of gyms," added Gowda.

Mahesh, a gymer said that he had to participate in a competition and due to lockdown he could not work on his bodybuilding.

"I was building my body for one year and due to lockdown I couldn't do the workout, I had to take part in a competition, now I need at least another one year to build my body back," Mahesh said.

Prasad, international bodybuilder said, "Most of the bodybuilders and gym owners are running gyms by taking loans, they are not in the situation to pay their loan EMIs."

"It's very important for us to reopen gyms and run them with all precautions and guidelines but the government is not allowing us to pay our loans and many gym owners and trainers are facing a tough time to earn living. We have requested Deputy Chief Minister Govind Karjol and cabinet ministers to allow us to open, but the government hasn't taken the decision in the interest of gyms which is creating more problems for us," Prasad said.

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News Network
January 14,2020

Bengaluru, Jan 14: A woman has sustained burns on the left hand and the left chest in a vicious acid attack that occurred as she walked home in Mallappa Layout, Seegehalli, near KR Puram in Bengaluru.

Prabhavathi, the victim, and her husband, Radhakrishna Reddy, own an acre and six guntas of land in Seegehalli. They had constructed 20 houses on the parcel and rented them while keeping the rest of the land empty and building a boundary wall around it, according to a senior police officer. 

Four men named Ravi, Kumar, Ashirvadam and Shekar laid claim to the land and demolished the boundary wall two years ago. When the couple approached the cops, Manjunath, a sub-inspector from KR Puram police station, visited the spot along with other officers and allegedly abused Reddy and his family. 

Reddy then approached a senior police officer who suggested that he file a complaint against the sub-inspector as well as his rivals for threatening the family. The case is pending in a case. 

On January 7, Ravi, along with four others — Raghu, Kabalan, Ashrivadam and Munireddy — mocked Prabhavathi as she walked home. They asked her to withdraw the complaint. When she ignored them, one of the men motioned to another person. In a flash, a man in the group threw acid on Prabhavathi. The liquid fell on her left hand and left chest, gashing them. Her screams drew her family who rushed her to a hospital. 

Reddy said the suspects had been intimidating them to sell the remaining land. He accused the KR Puram sub-inspector of “threatening” the family.

According to Reddy, following their complaint, a departmental enquiry was launched against the sub-inspector and his promotion was stalled. He suggested that the suspects had used the acid attack as a weapon to “silence” and force them into withdrawing the complaints. 

Following the acid attack, KR Puram police booked eight people — Ravi, Raghu, Kabalan, Ashirvadam, Munireddy, Sachin, Rahul, and Kumareshan — under IPC sections 326 (a) (acid attack) and 506 (criminal intimidation). Efforts are on to track them down. 

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