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 23,2020

Bengaluru, Mar 23: Following the alarming increase in Coronavirus cases, Police Commissioner Bhaskar Rao on Monday said that those subjected to home quarantine stamping would be arrested if they were found to visit public places.

"5,000 Home quarantine stamping was carried to ensure that they remain in home and not to be seen in public places for their own interest as well as in an attempt to prevent spread of Coronavirus", he tweeted.

"I have received information on some of those stamped are moving in BMTC (Bengaluru Metropolitan Transport Corporation) buses and sitting in restaurants. Please call 100, these people will be picked up, arrested and sent to government quarantine," Rao said.

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News Network
July 9,2020

Bengaluru, Jul 9: The total number of Covid-19 infections in Karnataka on Thursday breached the 30,000 mark as the state reported its biggest single-day spike of over 2,200 new cases and 17 related fatalities, taking the death toll to 486, the Health department said.

The day also saw a record 957 patients getting discharged after recovery, out of which 606 were from Bengaluru Urban.

Out of the 2,228 fresh cases reported on Thursday, a whopping 1,373 were from Bengaluru Urban alone.

The previous biggest single-day spike was recorded on July 8 with 2,062 cases.

As of July 9 evening, cumulatively 31,105 Covid-19 positive cases have been confirmed in the state, which includes 486 deaths and 12,833 discharges, the Health department said in its bulletin.

It said, out of 17,782 active cases, 17,325 patients are in isolation at designated hospitals and are stable, while 457 are in ICU.

"Death rate in Karnataka is 1.49 percent, while in Bengaluru is 1.28 percent, and our target is to bring it below 1 percent," Medical Education Minister K Sudhakar told reporters.

"The reason for spike in cases in Bengaluru and other places in recent days is because during the last four months of lockdown we had controlled it very well, but as we relaxed lockdown for economic activities we did not follow certain precautionary measures like distance among other things," he said.

The Minister also conceded that there were lapses on part of the government also in terms of tracing and tracking.

"It has to be improved especially in Bengaluru and we are taking steps in this regard."

Among the 17 dead seven were from Dharwad, two each from Hassan, Kalaburagi, Mysuru, and one each from Raichur, Uttara Kannada, Tumakuru and Davangere.

The deceased include 13 men and 4 women.

The dead are all either with a history of Severe Acute Respiratory Infection (SARI) or Influenza-like illness (ILI).

Out of 2,228 fresh cases today, contacts of the majority of the cases are still under tracing.

Among the districts where the new cases were reported, Bengaluru Urban accounted for 1,373, followed by Dakshina Kannada (167), Kalaburagi (85) and Dharwad (75).

Bengaluru urban district tops the list of positive cases, with a total of 13,882 infections, followed by Kalaburagi (1,901) and Dakshina Kannada 1,701.

Among discharges Bengaluru urban tops the list with total 2,834, followed by Kalabuagi (1,392) and Udupi (1,206).

A total of 7,79,209 samples were tested so far, out of which 20,028 were tested on Thursday alone.

So far 7,28,887 samples have been reported as negative, and of them 17,568 were reported negative today.

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News Network
April 11,2020

Bengaluru, Apr 11: Seven more people have tested positive for coronavirus taking the tally to 214 in the state.

"Coronavirus cases rise to 214 in Karnataka, with seven more people testing positive between 5 PM Friday and 12 PM Saturday," said the Karnataka health department.

According to the health department, all these seven people have a history of contact with COVID-19 patients. Five of them are workers of a pharmaceutical company in Mysuru.

"Out of the total cases in the state, six people have died while 37 others were cured or discharged," added the state health department.

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