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
June 23,2020

Bengaluru, Jun 23: Former Karnataka Chief Minister HD Kumaraswamy on Tuesday demanded that Bengaluru should be put under lockdown for 20 days to contain the spread of coronavirus, the cases of which have risen sharply recently.

 “Stop playing with people's lives. There’s no use in sealing off only some areas. If the people of Bengaluru must live, then a lockdown of at least 20 days is needed. Otherwise, Bengaluru will become another Brazil,” Kumaraswamy said in a tweet. “People’s health is more important, not economy.”

The JD(S) leader was reacting to the BJP government's decision to impose an area-wide lockdown in Chickpet, KR Market, Kalasipalyam and Chamarajpet while streets will be sealed off in VV Puram, Siddapura, Yelahanka, Vidyaranyapura and Chickpet.

Bengaluru has witnessed a huge spike in its Covid-19 tally; the city currently has at least 919 active cases. This has sparked off fears that the contagion might have reached the community.

Kumaraswamy has also demanded welfare measures for the poor. “The poor and the labourers should be given ration immediately. The state’s 50 lakh working class should get ₹5,000 each. The aid already announced by the government hasn’t reached drivers, weavers, Madiwalas and other communities,” he said, adding that mere announcements of a package won’t be enough and “it has to be implemented.”

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News Network
June 10,2020

Bengaluru, Jun 10: Janata Dal-Secular (JD-S) supremo and former Prime Minister H.D. Deve Gowda said on Tuesday that he filed his nomination for the June 19 Rajya Sabha elections from Karnataka in response to a collective call from national leaders to be back in the Parliament.

"Though I was not personally interested to contest, national leaders from Congress President Sonia Gandhi, National Conference President Farooq Abdullah, TMC and Left parties want me back in Parliament," he told reporters here.

Gowda, 87, filed his nomination in the Vidhana Soudha, submitting the papers to Assembly Secretary and Returning Officer M.K. Vishalakshi, a party official told IANS.

Gowda''s second son and former minister H.D. Revanna and third son and former Chief Minister H.D. Kumaraswamy were present on the occasion.

"Our party''s all 34 legislators also urged me to contest as my presence is necessary in Parliament at a time when the country was grappling with multiple crises in the aftermath of coronavirus," said Gowda.

Claiming that there was no pressure from his two sons as they are more concerned with his health, Gowda said he was touched by the requests of the national leaders, especially Gandhi who personally called him and asked him to contest as the country needed his presence in Parliament.

Gowda agreed to contest in the bypoll as his party''s candidate after the Congress state unit assured him of its support with its surplus votes, as the JD-S with 34 legislators is short of 10 votes of the required 44 votes.

It will be second time Gowda will enter the Rajya Sabha, 24 years after he was its member as the Prime Minster from June 1996 to April 1997 of the United Front government.

"Congress General Secretary K.C. Venugopal informed Kumaraswamy on June 6 that the party was fielding only its senior leader Mallikarjun Kharge from Karnataka and had surplus votes to ensure my victory as our party is 10 votes short of the required 44 votes to win," Gowda said.

Kharge filed his nomination on Monday.

Party''s outgoing member Kupendra Reddy, whose 6-year term ends on June 25, told Gowda that he was not interested for a second term as he did not get enough time in the upper house to raise issues.

"As our party does not have numbers in Parliament to get more time allotted to raise issues and participate in debates, Reddy wanted me to be in the Rajya Sabha in his place so that I could serve the nation better," Gowda said.

Gowda lost in the May 2019 general elections from Tumkur to G.S. Basvaraj of the BJP.

With the term of the four members -- Congress'' B.K. Hariprasad and Rajeev Gowda, BJP''s Prabhakar Kore and JD-S''s Reddy ending on June 25, the Election Commission notified the poll on June 1.

According to the poll panel, the nominations will be scrutinised on Wednesday and last date for withdrawal by candidates is June 12. Polling and vote count is on June 19.

From the ruling BJP, its grassroot cadres Eranna Kadadi and Ashok Gasti filed their nominations after Gowda.

By fielding Gowda for the fourth seat, the Congress and JD-S, who had post-poll and pre-poll alliances for the Lok Sabha and state Assembly elections in May 2019 and May 2018, queered the pitch for the BJP, denying it the chance to win a third seat.

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News Network
February 8,2020

Mangaluru, Feb 8: Professional services company Cognizant on Friday opened a new facility in Mangaluru, expanding its presence in Karnataka. Located in the heart of the city, the new 100,000 sq- ft facility can accommodate more than 1,100 employees, the NASDAQ-listed company said in a statement.

Cognizant has had an association with Mangaluru since 2011 when it acquired CoreLogic Global Services Private Limited (CoreLogic India), the India-based captive operations of CoreLogic, one of the largest real estate information and analytics provider in the US market.

From its existing centre in Mangaluru, Cognizant provides consulting, enterprise applications and business process services in the area of mortgage processing covering property taxes, research and investigations, property data warehousing and management of geospatial data.

The company currently employs more than 600 professionals in Mangaluru, more than 50 per cent of whom are women.

In addition to experienced professionals, Cognizant also hires fresh graduates for its Mangaluru centre from leading institutions such as Sahyadari Institute of Technology and Management, Manipal Institute of Technology, N.M.A.M. Institute of Technology, St Joseph's College of Engineering, Canara Engineering College, N.I.T.K. Surathkal, PA College of Engineering and Srinivas College of Engineering, as mortgage origination and servicing specialists, business analysts, consultants, automation specialists and software engineers.

In Karnataka, Cognizant also has operations in Bengaluru and Mysuru. The company has more than 28,000 professionals in Bengaluru and nearly 700 professionals in Mysuru.

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