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.

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"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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December 30,2024

Mandya: A 21-year-old man died after he allegedly blew himself up with a gelatin stick in front of the house of a girl he was in love with after her family rejected him, police said on Monday.

The incident occurred at Kalenahalli village of Mandya district on early Sunday morning, they said.

According to police, Ramachandra was in a relationship with a minor girl. Last year, he was booked under Protection of Children from Sexual Offences Act after he eloped with the girl. He was arrested in the case and spent three months in jail as an under-trial.

After getting released from jail, he entered into a compromise with the girl's family and the case was refuted in the court. But later, he started calling the girl and continued to maintain his relationship with her, police said.

Apparently, the girl's family was planning to get the girl married to someone else once she attained the legal age, a senior police officer said.

Ramachandra, a resident of a neighbouring village in Nagamangala taluk was allegedly upset with the girl's family for rejecting him. Suddenly on Sunday, he reached in front of the minor girl's house and detonated the gelatin stick he carried with him and the explosion claimed his life on the spot, the officer added.

Based on the complaint from the deceased person's family, calling it suspicious death, a case has been registered, police said. His family was in quarrying business and that's how he got access to gelatin stick, police said.

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December 25,2024

ctravi.jpg

Bengaluru: Police Inspector of Khanapur station has been suspended for dereliction of duty by allegedly letting in political leaders and others inside the station while BJP MLC C T Ravi was in custody in connection with a case registered against him, officials said on Wednesday.

The suspension order was issued by the office of Inspector General of Police, North Zone, Belagavi on December 21, they said.

On December 19, Ravi was arrested by the police from the premises of Suvarna Vidhana Soudha in Belagavi for allegedly using a derogatory word against Minister Laxmi Hebbalkar in the legislative council hall.

According to the official order, when C T Ravi was taken to Khanapura police station for safety reasons, Police Inspector Manjunath Nayak, who was in-charge of the station, was told to use the staff and assign suitable duties to them.

It was also ordered to block the entry of any person other than the accused inside the police station. However, many political leaders and mediapersons stormed inside the police station. This created a noisy atmosphere inside the station, it stated.

The order further stated that as a responsible police inspector grade officer, Nayak failed to prevent several political leaders from entering Khanapur Police station, thus creating a tumultuous atmosphere.

He violated the order of superiors, showed negligence and carelessness while performing duty. Therefore, a departmental inquiry was initiated and Nayak was suspended from service with immediate effect for dereliction of duty, the order stated.

According to a police statement issued on Wednesday, after registration of case under section 75 (sexual harassment) and 79 (word, gesture or act intended to insult the modesty of a woman) of the Bharatiya Nyaya Sanhita in Hirebagewadi police station here, Ravi was taken into custody and handed over to the investigating officers.

However, Ravi was shifted to Khanapura police station considering the security aspect and the huge crowd gathered near Hirebagewadi police station.

"A large number of mediapersons, supporters and party workers gathered and created a chaotic atmosphere in Khanapura police station. There was also the possibility of additional supporters and Congress workers arriving. All these factors also had the potential to disrupt public order," the police stated.

Keeping in mind Ravi's safety, he was shifted to Ramadurga, it said.

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December 31,2024

Mangaluru: In a heartwarming act of selflessness, the family of a 52-year-old auto-electrician from Mangaluru chose to donate his organs after he was declared brain dead in Abu Dhabi. This decision brought hope and new life to four people, turning a personal tragedy into a legacy of compassion.

Sudhakar, son of Chakku, hailed from Ekkur in Magaluru, and worked in Al Ain for nearly five years, continuing a 15-year career in the UAE. On December 14, while at work, Sudhakar experienced dizziness and was rushed to a clinic. His condition worsened as his blood pressure fluctuated. Due to insurance complications, he was referred to multiple hospitals before being diagnosed with a brain clot. A surgery was performed with his company’s consent, but during the procedure, Sudhakar suffered a cardiac arrest and was placed on a ventilator. Despite the family’s hopes for his recovery, he was declared brain dead on December 18.

Faced with an emotionally wrenching decision, the family chose to honor Sudhakar's memory by donating his organs. "The authorities contacted us for our consent, and the entire family, including his wife Seema and her father, participated in a conference call. Though it was a tough decision, we agreed to give life to others through him," shared Ganesh, Sudhakar's elder brother.

On December 23, at Cleveland Clinic in Abu Dhabi, Sudhakar’s lungs, liver, and kidneys were successfully retrieved for transplantation, giving four people a second chance at life. "We are proud that even in his passing, Sudhakar became a beacon of hope for others," said Ganesh.

The authorities extended immense support to Sudhakar’s family, ensuring the respectful transport of his mortal remains to Mangaluru. They also sponsored the travel of a family member to accompany the body, which arrived on December 27. Sudhakar's final rites were conducted the same day.

Sudhakar leaves behind his wife Seema, a homemaker, and two children, Sakshi, 20, and Sakshath, 11. While the family takes solace in his final act of generosity, they hope for support in securing the children's education and future.

Sudhakar’s story serves as a poignant reminder of how even in loss, one can choose to give the ultimate gift of life to others.

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