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 19,2020

Belagavi, Mar 19: South Western Railway (SWR) on Thursday increased the fares of the platform tickets at Belagavi, Hubballi and Ballari.

The rate of platform tickets has been increased to Rs 50 with effect from Thursday till March 31, in order to control the crowding at platforms in view of the coronavirus outbreak.

Belagavi, Hubballi, and Bellari were all big stations and maximum number of people, including both passengers and those there to see them off come or to receive them at these railway stations, a SWR official sources said.

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News Network
February 24,2020

Shivamogga, Feb 24: Karnataka Chief Minister B S Yediyurappa on Monday said that he has been invited at the banquet hosted for US President Donald Trump at Rashtrapathi Bhavan on Tuesday, but, he is yet to decide on his presence.

“I have been invited, but I have various engagements and work, let’s see. I have not yet decided on what to do. It is true that I got the invitation,” he told reporters here.

"President of a powerful and rich country like United States of America visiting India is not a normal thing. He (Trump) has said that he personally shares good relationship with Prime Minister Modi and has confidence in him…let’s wait and see", Mr Yediyurappa said in reply to a question.

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May 27,2020

Bengaluru, May 27: Former Karnataka chief minister and JD-S leader HD Kumaraswamy on Wednesday said that the state government should withdraw the decision to name the Yelahanka bridge after Hindutva ideologue Vinayak Damodar Savarkar.

"The state government's decision to name the Yelahanka bridge after Savarkar is a disgrace to those who have struggled for the country's prosperity. This doesn't give a good name to the state government," Kumaraswamy tweeted.

"There are many great people who worked for the development of the country before and after independence. Their names could have been used for this bridge. Do other states name their bridges after our leaders? On behalf of the people of the state, I urge the state government to take a step back from this decision," he added.

The newly built Yelahanka bridge was named after Savarkar last year in a BBMP council meeting. Later it was sent to state government for approval. Tomorrow, the bridge is likely to be inaugurated for public use.

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