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 18,2020

Bhopal, Mar 18: Congress leader Digvijay Singh's detention by police in Bengaluru is display of "dictatorship and Hitlarshahi" by the BJP, Madhya Pradesh Chief Minister Kamal Nath said here on Wednesday.

Singh staged a protest near a Bengaluru resort this morning where rebel MLAs of Madhya Pradesh Congress are staying, and demanded that he be allowed to meet them.

Singh, who has been detained by the police, accused the BJP of holding the MLAs captive and said that he would go on a "hunger strike".

Reacting to this, Nath said if the need arises he would also go to the Karnataka capital.

"Preventing Congress Rajya Sabha candidate and other ministers from meeting MLAs, misbehave with them, forcibly taken them into custody is totally a dictatorship and hitlershahi (sic)," Nath said in a tweet.

"Entire country is watching how an elected government is being made unstable and how BJP is murdering democratic values," Nath said.

"Why they are not allowing them to meet MLAs. What BJP is afraid of. BJP is playing a dirty political game in the state," the chief minister tweeted.

Demanding immediate release of detained Congress leaders, Nath said that democratic norms and Constitutional values are being stifled.

Later speaking to reporters, the CM said, "Why the BJP is afraid of presenting 16 MLAs here (Bhopal)? What is the problem in one person (Singh) meeting with 16 legislators?"

Nath reiterated that his government had proven majority on floor of the House in the last 15 months since coming to power.

Amid political uncertainty in Madhya Pradesh, the state Congress Legislature Party on Tuesday moved the Supreme Court seeking direction to the Centre and the BJP-led Karnataka government to grant it access to communicate with its rebel MLAs staying in Bengaluru.

The apex court had also directed the Kamal Nath government to respond by Wednesday to a plea by senior BJP leader Shivraj Singh Chouhan seeking immediate floor test in the Assembly.

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News Network
April 18,2020

Bengaluru, Apr 18: Hours after announcing that two-wheelers will be allowed to ply and that IT/BT companies can resume operations with 33 per cent strength, Chief Minister B S Yediyurappa on Saturday took a u-turn and rolled them back, citing “public opinion” as the reason. 

Earlier in the day, Yediyurappa announced that, after April 20, there will not be any restriction on the movement of two-wheelers in areas that are not COVID-19 containment zones. Yediyurappa also said that a third of IT/BT employees will be allowed to go to the office after April 20. 

“In the backdrop of public opinion and after discussions with senior officials, it has been decided that the prohibition on two-wheelers will continue throughout the lockdown period,” a statement from the Chief Minister’s Office said. “And in the IT/BT sector, only essential services will be allowed and the work-from-home policy will continue.” 

According to sources, the u-turn came following opposition from Yediyurappa’s Cabinet colleagues. “If I was in the meeting, I’d not have allowed it,” a minister said. Only Home Minister Basavaraj Bommai and Revenue Minister R Ashoka were in the meeting Yediyurappa held earlier in the day. The Opposition also stemmed from the fact that there was no need to make decisions on the lockdown when the Cabinet was scheduled to meet on April 20, sources said. 

The incoordination was apparent on Friday when Deputy Chief Minister CN Ashwath Narayan, the IT/BT minister, said 50 per cent of employees in the sector will be permitted to work while Yediyurappa said this would depend on the number of cases reported in the coming days. 

Other announcements made by Yediyurappa remain unchanged.

“Places, where COVID-19 cases are reported, will be identified as containment zones. In such containment zones, an incident commander will be appointed and given magisterial power. Teams comprising the police and health department officials will oversee the lockdown,” Yediyurappa said. “Lockdown will be much more stringent in these areas and no one will be allowed to step out. Essential supplies will be delivered home.”

According to Bommai, there were 32 containment zones in Bengaluru and ‘hotspots’ have been identified in eight districts.

With an eye on restarting economic activities, the government will allow construction work and industries. “In urban areas, construction work will be allowed to start wherever construction workers have the facility to stay on site,” Yediyurappa said. “The manufacturing sector in rural areas and industrial units located in the special economic zones (SEZ) and townships in urban areas will be allowed to function,” he said.

Stating that inter-state travel will be prohibited, Yediyurappa said the districts of Bengaluru Urban, Bengaluru Rural and Ramnagara will be considered as one only for the movement of industrial workers.

Asked about liquor sale, Yediyurappa said a decision will be taken after May 3. The government has already prohibited liquor sale till April 20 midnight.

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News Network
January 22,2020

Bengaluru, Jan 22: The suspected man in planting of a live bomb at the Mangaluru International Airport surrendered before the DG and IG of Karnataka Police, Neelamani Raju, here on Wednesday, police sources said.

The accused was identified as Aditya Rao, a resident of Udupi.

The accused was taken for questioning by the Halasurugate Police, where he was being interrogated intensively, the sources further said.

According to them, he confessed that he planted an explosive device at Mangaluru Airport on Monday said that it was an act of revenge for denying him an employment by the Kempegowda International Airport Limited (KIAL).

He was arrested by the Bengaluru police in the past for making a hoax call to the police stating that a bomb had been planted at the Bengaluru Airport.

Karnataka Home minister Basavaraj Bommai told the media that 'the Bengaluru police have taken the custody of Aditya Rao, who is being subjected for a thorough interrogation'.

The Mangaluru police was also likely to join the Bengaluru police into the investigation, the sources added.

Also Read: Udupi’s Aditya Rao arrested for issuing bomb threats to Airport, railway station

Comments

sameer
 - 
Wednesday, 22 Jan 2020

This would have been a false flag operation, if he was not caught, they would have been an explosions and Dr.police would have put muslim youths behind bars...or that was the intention/plan but due to unforseen reasons failed......i hope someone comes out with the truth..

Alert
 - 
Wednesday, 22 Jan 2020

if he were to be a muslim, he would have benn branded terrorist. revenge and all these expalnations are just excuses. investigate from where an dhow he got bombs.

Ashi
 - 
Wednesday, 22 Jan 2020

Bomb has weaken once bomber name appears. Now time for fact finding, family emotions, personal attachments etc. If he was Muslim it would have connected to ISIS, Anti-CAA, Pakistan, Kerala..

 

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