In Punjab,tax burden just got heavier

Cabinet approves property tax,luxury tax on hotels up by 200%.

Written by Express News Service | Chandigarh | Published: August 29, 2012 1:26 am

Cabinet approves property tax,luxury tax on hotels up by 200%

Looking to generate revenue to fill its coffers,the Punjab government on Tuesday approved imposition of property tax,one per cent cess on stamp duty,200 per cent hike in luxury tax on hotels and marriage palaces and 6 per cent road tax in state.

All these proposals,approved in a cabinet meeting chaired by Chief Minister Parkash Singh Badal,will generate nearly Rs 950 crore per year.

As per the proposal approved by the cabinet,the Local Government Department will levy property tax on the unit area basis. The tax will be payable on self assessment basis,based on the actual market value of the property to be determined by the municipal corporations and committees in consultation with the concerned deputy commissioners. This will help generate Rs 180 crore annually.

On the resource management side,the Cabinet decided to rollback its earlier decision to levy 5 per cent VAT on sugar putting a burden of Rs 100 crore on the exchequer.

Meanwhile,the VAT on a number of other items will go up by 0.5 per cent. The declared goods — mainly food items — have been exempted from this hike. Other proposals include enhancement of luxury tax on the hotels and marriage palaces from the existing 4 per cent to 8 per cent,rationalization of VAT on shoes,imposition of processing fee of Rs 800 on VAT dealers and increase in lump-sum tax payable by brick kiln owners.

The cabinet also approved the proposal of Revenue department for levying the social infrastructure cess for health and education at the rate of 1 per cent on the time of registration of land. Thus the customer will end up paying 6 per cent – five per cent stamp duty and one per cent cess – on it. The upper limit for registration fee had been increased from Rs 30,000 to Rs 2 lakh. The increase in mutation fee and facilitations charges at the Fard Kendras and suvidha centers was also approved by the cabinet.

The cabinet also approved to amend Punjab Motor Vehicle Taxation Act,1924,for the provision of penalty and punishments against the defaulters for not paying vehicle tax at the state entry points. Buses plying on contract carriage permit or tourist permit of other states entering into Punjab without payment of Motor Vehicles Tax on entry point would be liable to imposition of penalty for the first offence of Rs 50,000 and Rs1,00,000 for the subsequent offence. Subsequently the erring owner or driver will be punished with imprisonment up to two years.

It also approved to rationalize the motor vehicle tax on different types of vehicles which was likely to generate an additional revenue of Rs 108 crore annually. The motor vehicle tax will be levied at the uniform rate of 6 per cent on all types of vehicles besides lump-sum motor vehicle tax will also be levied on the transfer of all kinds of vehicles and will range from Rs 250 to Rs 7,500. Similarly,the motor vehicle tax has been enhanced on goods carriage,contract carriage,private service vehicles,tourist buses and vehicles plying on the All India Tourist Permit.

PPP flays new taxes

Alleging that the people of Punjab are being coerced to pay more taxes,the PPP on Tuesday accused the SAD-BJP government of being insensitive. Party chief Manpreet Badal said the new taxes will have adverse effect on the industry,which is already battling for survival and common man will be further hit. “Instead of levying fresh taxes,the state should impose ban on extravagant expenditure by politicians and the bureaucracy,” he said. He welcomed the rollback of five per cent VAT levied on sugar.

Major decisions

One-member tribunal approved for quick disposal of land acquisition cases by amending Section 60 and other related sections of Punjab Town Improvement Act,1922.

Nod for recruitment of 5,078 teachers of the master cadre and 100 of art and craft on consolidated pay of Rs 6,000 and Rs 5,800 per month for three years on the contract basis from among TET qualified candidates.

Approves reviving 60 vacancies of the PCS (Executive Branch) cadre,of which 30 would be filled through direct recruitment and 30 by promotion.

Approval to fill 250 Class IV vacancies on contingent paid basis (full time)

Approval for filling 292 posts of different categories in the Punjab Home Guards and Civil Defence department by taking them out of the purview of Punjab Subordinate Services Selection Board

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