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 16,2020

Bengaluru, Feb 16: Deputy chief minister Laxman Savadi’s election to the lone vacant council seat, for which a bypoll has been called, is only a formality as the only other candidate in the contest, independent BR Anil Kumar, dropped out on Saturday.

Kumar conveyed his decision to council secretary and returning officer Vishalakshmi. He decided to withdraw from the February 17 bypoll after failing to get support from Congress and JD(S) legislators.

The bypoll was necessitated after sitting member Rizwan Arshad of Congress resigned as he moved to the legislative assembly as an MLA. Rizwan won the Shivajinagar bypoll in December last year.

“Since the notification on candidates in the fray, after the last date of withdrawal, has already been published, irrespective of any candidate’s retirement, the election has to be conducted,” an official said.

Savadi’s victory was always assured as BJP has 119 members in the House.

Still, Ramanagara BJP district president Rudresh and MP BY Raghavendra reportedly approached Kumar, urging him to withdraw. Kumar, however, denied that he was persuaded by BJP.

“I entered the fray thinking secular parties and likeminded MLAs will support me, but that didn’t happen, so I decided to retire,”he said.

A section of Congress and JD(S) politicians, led by former minister HD Revanna, had persuaded Kumar to enter the contest with the hope that disgruntlement among some BJP legislators over Savadi’s promotion as the deputy CM would result in an upset.

Former chief minister HD Kumaraswamy also offered to support Kumar. Siddaramaiah of Congress refused to do the same. Congress and JD(S) did not field any candidates of their own as they don’t have the requisite numbers in the House.

Savadi must get elected to the council before February 20, otherwise he will lose his cabinet role. According to rules, a person who is not a member of either House should get elected within six months after becoming a minister. Savadi took oath on August 20 last year.

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April 21,2020

Bengaluru, Apr 21: Alarmed by reports that 53 media persons have contracted coronavirus in Maharashtra, a Minister on Tuesday urged Chief Minister B S Yediyurappa to screen all the journalists in Karnataka.

During the regular Covid-19 related briefing on Monday, a reporter had raised the issue of 53 journalists in the neighbouring state testing positive for the disease, with Minister for Primary and Secondary Education S Suresh Kumar.

In Maharashtra, out of the 171 scribes examined medically, 53 were found to have the viral infection.

In his letter to the CM, Kumar said a similar test should be carried on the journalists in Karnataka.

"The journalists wanted a similar kind of screening to be carried out on them. Therefore, please direct the health and the information department immediately to conduct the screening of journalists who are in contact with public," Kumar said.

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May 26,2020

Mangaluru, May 26: Days after the government of India approved the use of chartered flights for the repatriation of Indians stranded across the world amidst covid-19 lockdown, two NRI entrepreneurs in Saudi Arabia have offer to bear the cost of repatriation if they get formal green signal to repatriate stranded Indians from Dammam to Mangaluru International Airport before June 5.

Althaf Ullal and Basheer Sagar, the two Kannadiga Directors of Al Khobar-based Saqco, have made this offer in a letter written to Karnataka Chief Minister BS Yediyurappa and Union Civil Aviation Minister Hardeep Singh Puri.

The duo have assured that their company will bear the cost of the first chartered flight from Dammam to Mangaluru if the government paves way for its operation by June 5. 

It is learnt that many private airliners have come forward to operate chartered flight and are waiting for final clearance from the government. It will cost approximately Rs 45 lakh to hire chartered flight with 180 capacity from Dammam to Mangaluru. 

Pregnant women, medical emergency cases, senior citizens on visit visas, those who lost jobs due to lockdown among other stranded Indians will be given priority in this flight, they said.

"Our company will completely bear this cost. Passengers only need to bear the cost of institutional quarantine after reaching Mangaluru," they have clarified. 

Comments

i am from koda…
 - 
Friday, 29 May 2020

i am stuck in saudi arabia and waiting eagerly to reach karnataka as early as possible. I missed my sisters marriage this month 24th, and my marriage is on june 14th.... i have some health issue also... really want to go back as soon as possible. Please help me

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