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
July 17,2020

Mysuru, Jul 17: Deputy Commissioner Abhiram G Sankar has ordered a partial lockdown in the City of Palaces Mysuru due to the increase in number of Covid-19 cases day by day.

As per the order, the lockdown will be in force from 0600 hours today till 0600 hours on July 24 at N R, Udayagiri, Lashkar and Mandi Mohalla Police limits in the city. In addition, it has decided to lockdown 400 meters from the house where Covid-19 patients have died.

The order further states that all the religious gatherings are prohibited and only parcel service is available to hotels.  Movement of vehicles is also prohibited but in emergency cases, it may be allowed.  Employees and people on essential services can go to work after producing their ID cards.

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coastaldigest.com news network
May 19,2020

Bengaluru, May 19: In the wake of assurance by Chief Minister B S Yediyurappa to look into their demands, hotels and restaurants in Karnataka today decided to continue takeaway services for three more days.

Hotels were also exempted from the total lockdown on Sundays in Karnataka - under the state guidelines issued for Lockdown 4.0.

The Karnataka Pradesh Hotel and Restaurants' Association (KPHRA) had earlier threatened to stop takeaway services over refusal to allow dine-in facility in the fourth phase of the lockdown. 

B Chandrashekar Hebbar, president of KPHRA said that the CM urged hoteliers to wait for three days, assuring that a decision will be taken. 

"We appraised the government over the mounting losses by keeping just take-away services open. Noting that social distancing and other guidelines will be followed, we urged him to allow dine-in facility," he said.

The Association will wait three more days before discontinuing parcel services, Hebbar said. 

The government also provided relaxation to hotels from the total lockdown announced in Karnataka on Sundays, he said. 

A package for hotel employees such as cooks and waiters, along the lines of those announced for farmers, cab drivers and weavers, was also sought in a petition submitted to the chief minister.

In fact the state government had expressed its willingness to open hotels under the Lockdown 4.0, subject to restrictions. However, the central guidelines do not allow dine-in services.

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coastaldigest.com news network
May 31,2020

Mangaluru, May 31: The bus services by private operators in Dakshina Kannada and Udupi Districts will begin from tomorrow (June 1) with 15 per cent hike in the fares, Canara Bus Owners Association president Rajavarma Ballal said on Sunday.

In a statement issued here, he said that the members of the Association have appealed for a 3-month tax break. ''We have received tax breaks for 2 months and have demanded for an additional month again,'' he added.

He said that the government has agreed to a 15 per cent hike in bus fares. All the passes issued already will be converted into cash cards and no discounts will be available till the end of the COVID-19 crisis.

An added attraction in private buses will be the option of paying travel fares through smart cards.

According to Dakshina Kannada Bus Operators Association president Dilraj Alva, 50 per cent of 325 private city buses will resume their services on Monday. It also meant that 50 per cent of buses will operate on the allotted routes.

The smart cards (or travel cards called Chalo Card) will not be introduced on all routes at a time. They will be introduced in a phased manner covering all routes from Monday.

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