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 15,2020

Mangaluru, Jun 15: A father and his four-year-old son were killed when their motorcycle was hit by a lorry from behind at Bakampady junction on the outskirts of the city.

The Police said the deceased has been identified as Abdul Bhasheer, a resident of Krishnapura and his son Shayan. 

On Sunday evening, Bahseer was going from Mangaluru to Krishnapura by the motorcycle along with wife and son when a speeding lorry "dashed into the motorcycle from behind and knocked them down''.

The four-year-old son died on the spot while Basher and his wife were rushed to the hospital. However, the husband succumbed to injuries at the hospital on Monday. Local police registered a case in this connection.

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News Network
July 1,2020

Mangaluru, Jul 1: The Bajpe police station under the limits of Mangaluru City Police Commissionerate has been sealed down after an arrested accused was tested positive for the Coronavirus.

Police said on Wednesday that the Bajpe police arrested two persons in connection with plotting dacoity in Oddidakala in Bajpe. After the arrest, their throat swab was sent for a test. On Wednesday, one of the accused tested positive for the Coronavirus.

In this connection, the Bajpe police station has been sealed down and the police personnel who were present during the arrest are placed under home quarantine.

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News Network
March 30,2020

Bengaluru, Mar 30: The coronavirus scare has taken a toll on the poultry industry in Karnataka with many poultry farm owners culling the birds, insiders in the poultry industry said.

At least one lakh birds have been culled in the last one week, the sources said.

Ever since the news spread about novel coronavirus spreading rapidly, the poultry industry started feeling the heat.

The lockdown spelt further trouble for the industry with reduced business compelling farm owners to go in for the culling.

According to Muddukrishna of C N Nischchith Enterprises, a live chicken dealer in Bengaluru, the culling had taken place in Shivamogga, Kolar and other places.

"There is a drastic decline in business. There are neither customers nor enough supply of birds for sale. We are badly hit. There are many poultry farm owners who have incurred tremendous loss due to the lockdown," Muddukrishna told news agency.

Another major poultry industry owner, having his farms in Channapatna, Ramanagar, Anekal and surrounding places, said he had to get rid of at least 4,000 birds in each of these farms.

"This is not restricted to me alone. There are about 64 major poultry industries who have gone for the drastic measure of culling," said the farm owner.

He said in the last one week, at least one lakh birds have been culled as it was hard for them to maintain them.

"Each bird needs at least a kilogram of grains in three days to eat whereas each kg of poultry food costs about Rs 32. We have about two lakh birds in our farm. How can we maintain if there is no business," rued the poultry farm owner.

The industry has suffered a double whammy.

People gave up eating chicken following rumours that the novel coronavirus COVID-19 is similar to SARS, another virus.

Further, the lockdown has blocked the transportation of these birds, he added.

According to the farm owner, in the last one month, he had suffered a loss of around Rs 15 lakh and if the situation continues for the next three months, his condition would be beyond imagination.

Muddukrishna said the poultry farm association had given a memorandum to the animal husbandry and fisheries department seeking direction on the transportation of these birds.

Accordingly, the secretary in the department of Animal Husbandry and Fisheries A B Ibrahim issued a circular to all the city police commissioners, deputy commissioners of the district, superintendent of police and the CEO of Zilla Panchayath on Friday that the animal husbandry services have been declared as essential services.

Ibrahim said in his circular that the production of chicken birds, sheep, goat, pigs, etc in the farm and their transportation, manufacturing feed, liquid nitrogen meant for veterinary use and other items related to the Animal Husbandry should be permitted.

"Despite the order, our vehicles are stopped and drivers are harassed," alleged Muddukrishna.

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