Karnataka for higher tax on luxury goods as Covid hits revenue

News Network
August 28, 2020
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Yediyurappa

Bengaluru, Aug 27: Cash-starved Karnataka on Thursday urged the Central government to increase GST on luxury goods to make up for the revenue shortfall caused by the Covid-19 pandemic, an official said on Thursday.

"State Home Minister Basavaraj Bommai, who represents Karnataka in the GST Council and participated in its 41st meeting through video conferencing on Thursday, told Union Finance Minister Nirmala Sitharaman to put more tax on luxury goods, tobacoo and pan masala for increasing the revenue and compensating states like Karnataka, which have been hit by the pandemic," a finance department official said.

Admitting that the Covid-induced lockdown since March 25 and its extension till May 31 impacted revenue collection due to subdued economy and continued restrictions on a number of tax generating activities, Bommai said the state would miss the revenue target of Rs 1.8 lakh crore set for this fiscal (2020-21).

"With the war on containing the pandemic costing the state heavily, the Centre has to compensate us to make up for the revenue shortfall from lower tax collection in Covid times," Bommai told the Finance Minister, who is a Rajya Sabha member from the southern state.

Though Chief Minister B.S. Yediyurappa also holds the finance portfolio and presented the state budget for this fiscal in the Assembly on March 5, he could not attend the GST Council meet as he is resting after recovering from Covid-19 earler this month.

Goods and Service Tax (GST) compensation for the state since April is Rs 13,764 crore, and its collection in the first four months was 71.61 per cent.

"The Centre should borrow more to compensate the state, which is reeling under financial crisis due to Covid disrupting life, livelihood and the economy and causing untold hardship since mid-March," Bommai said.

A special cess is levied on the highest tax slab of 28 per cent on luxury goods to compensate the states for the revenue loss due to the GST subsuming state's taxes and local levies.

"A reduced share in Central taxes, delay in GST compensation and loss of revenue due to the Covid-19 lockdown have pushed the state into financial stress," added the official, citing the minister.

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News Network
January 13,2025

Mangaluru: Non-Resident Indians (NRIs) in Singapore remain determined to establish direct air connectivity between Mangaluru and Singapore despite setbacks. This follows Air India Express' (AIE) recent decision to postpone its planned direct flight service on this route, disappointing many expats.

In response, NRIs have proposed an alternative solution: extending IndiGo's existing Singapore-Bengaluru flight to Mangaluru. Currently, the Singapore-Bengaluru flight lands at Kempegowda International Airport at 7:40 AM, but passengers cannot board the 9:00 AM Bengaluru-Mangaluru connection due to insufficient transit time. Extending the Singapore-Bengaluru flight to Mangaluru would address this issue and benefit travelers.

Rajesh H. Acharya, director of HQ Connections in Singapore and coordinator of the Singapore Tuluver community, expressed disappointment over AIE's handling of the situation. "We’ve been advocating for this route since 2017, and it was close to becoming a reality. However, the sudden postponement and lack of stakeholder support have delayed our efforts," he said.

A petition has been submitted to IndiGo Airlines requesting the introduction of a direct Mangaluru-Singapore flight. Alternatively, it suggests extending IndiGo’s existing Singapore-Bengaluru flight to include Mangaluru. Expats have also approached Scoot Airlines in Singapore for direct connectivity. However, the lack of 'Point of Call' status for Mangaluru Airport remains a significant hurdle for international flights.

Despite the challenges, NRIs continue their efforts to make direct air connectivity between Mangaluru and Singapore a reality.

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News Network
January 9,2025

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The United Nations Children’s Fund (UNICEF) has reported that at least 74 children were killed in Israel’s relentless violence in the Gaza Strip during the first week of 2025, marking a grim start to the New Year for children in the besieged territory.

In a recent report released on Wednesday, UNICEF said that the fatalities occurred within just eight days, emphasizing that the lack of adequate shelter, compounded by winter weather, poses severe risks to the children in Gaza.

“For the children of Gaza, the New Year has brought more death & suffering with at least 74 children reportedly killed,” Executive Director of UNICEF Catherine Russell said, calling for an immediate ceasefire to end the violence.

She expressed deep concern over the number of children who have either been killed or have lost loved ones during the tragic beginning of the year.

Numerous fatalities have occurred during mass casualty events, including nighttime assaults in Gaza City, Khan Yunis, and al-Mawasi, which has been designated a "safe zone." The most recent attack claimed the lives of five children in al-Mawasi on Tuesday, according to UNICEF.

The situation is dire, with reports indicating that eight infants and newborns have died from hypothermia since December 26, highlighting the severe risk facing young children who are unable to regulate their body temperature amid the harsh conditions as Israel weaponizes cold against children in the Gaza strip.

“UNICEF has long warned that inadequate shelter, lack of access to nutrition and healthcare, the dire sanitary situation, and now the winter weather put the lives of all children in Gaza at risk. Newborns and children with medical conditions are especially vulnerable,” Russell emphasized.

The humanitarian crisis in Gaza has reached alarming levels. The number of aid trucks entering the region remains grossly inadequate to meet the basic needs of families, while civil order has largely unraveled, leading to the looting of humanitarian supplies.

According to UN reports, over a million children are currently living in makeshift tents, with almost all of the 2.3 million population displaced several times over the last 15 months.

Moreover, the few operational hospitals are overwhelmed, and the destruction of civilian infrastructure has severely hampered access to essential services, including food, clean water, sanitation, and healthcare.

Kamal Adwan Hospital, previously the only functioning medical facility in northern Gaza with a pediatric unit, has ceased operations following a raid last month, exacerbating the already critical healthcare situation.

A recent report from the Palestinian Central Bureau of Statistics noted a 6% decline in Gaza's population in 2024, indicating that Israeli forces are intentionally targeting specific demographic groups, such as children and youth, resulting in a significant “distortion of the population.”

Since the onset of the genocide, Israel has killed 45,936 Palestinians, including over 17,600 children, as reported by the Health Ministry in Gaza, indicating a tragic loss of one child approximately every hour.

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News Network
January 13,2025

Udupi: A resident of Karkala in Udupi district has accused five individuals of defrauding him of nearly Rs 2 crore under the guise of business partnerships.

Dawood Hakim, a resident of Ennehole in Marne village, Karkala, has filed a complaint stating that he operated a mobile sales and service business on Karkala Market Road for 15 years. He had known the accused for over two decades and trusted them implicitly.

According to Dawood, the accused convinced him to invest in multiple business ventures, including land dealings and a travel business, promising substantial returns and partnership benefits. Believing their assurances, Dawood reportedly handed over cash, gold, and a vehicle.

However, the promised profits never materialized, and the accused allegedly failed to return the money or assets. Dawood claims this deception has caused severe financial distress to him and his family, amounting to a loss of around Rs 2 crore.

A case has been registered at the CEN police station, and investigations are underway.

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