'Check leakage, don't impose new taxes'

'Check leakage, don't impose new taxes'

Addressing a press conference in Mysore, on Tuesday, Siddaramaiah said that to levy a new tax, the government has to announce a new ordinance, or bring in amendment to the existing tax. “If implemented, it will have a cascading effect on the common man, who is already reeling under the effect of price rise of essential commodities. Following drought and now floods, agriculturists have suffered a major blow, which will lead to a fall in food grains production. It is, thus, an indication that prices will increase further in future,” he added.

He added, “Yeddyurappa, who also holds the finance portfolio, has failed to deliver goods since he assumed power. Taxable revenue sources like stamps and duty, commercial tax and motor vehicles have declined. But for excise, revenue from other sources is in a sorry state. If there is revenue from excise, it is due to the ban on arrack,which has boosted liquor sale,” he said.

“The chief minister has to take note of non-taxable areas that have become stagnant. Most importantly, strict austerity measures have to be implemented, putting a ceiling on all departments from spending money according to their wishes. Moreover, the government should stop announcing a slew of new programmes,” he demanded.
Siddaramaiah also appealed to the chief minister to waive off farmers loans in the flood-affected regions. Also, farmers should be provided with seeds, manure and fertiliser free of cost, so that they can take up cultivation. Besides, providing essential food items, kerosene also needs to be given.

Farmers are getting a compensation of Rs 2,000 per acre, which is unscientific and thus the amount needs to be increased to Rs 10,000, demanded Siddaramaiah.

Hike in VAT criticised
The Karnataka State Tax Advocates Association has criticised the increase in Value Added Tax from 12.5 percent to 13.5 percent, DHNS reports from Bangalore.

The Association has requested the Government to look into other avenues for collecting money towards flood relief in North Karnataka. “The increase in rates under the Sales Tax on Petroleum products to meet the expenses towards relief works in flood hit areas is totally not warranted and the same is unjustifiable,” said a release from the Association.

It has instead asked the Government to reduce Adminsitrative Expenditures and bring down the corruption within the numerous state departments to the compensate the hike in tax rates under VAT.