Latest


Karnataka for higher tax on luxury goods as coronavirus hits revenue

  •   Fri, Aug 28 2020 08:03:16 AM

Bengaluru, Aug 28 (IANS): 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 told IANS here.


B S Yediyurappa

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.

 

 

 
  

Top Stories

Mangaluru: Luxury residential apartment ‘Divine Grace’ inaugurated

  •   15 hours ago    1

Comment on this article

  • kateel pai, vitla

    Fri, Aug 28 2020

    Corrupt politicians/ bureaucracy, Lack of tax base (only 1.5% of the population pay income tax), Politically motivated welfare schemes, Natural calamities, Covid-19, ......... Please add to the list

    DisAgree Agree [6] Reply Report Abuse

  • Oswald, Mumbai

    Fri, Aug 28 2020

    To increase tax collection in India.. de Government should change de direct tax structure below 10l no tax above 10l tax slable for All individuals..as in india don't charge tax on MLA or MP government workers.. high post military persons.
    Rich farmers... as only 20% or less people r paying tax in India.. if India government will keep doing de same de economy will not grow.. they have to collect tax from everyone in de country .. as all individuals should pay tax... unless we change de mindset of de people in de government job the country can't move forward.

    DisAgree [1] Agree [3] Reply Report Abuse

  • Richard, India

    Fri, Aug 28 2020

    We can see so much pain hidden behind every comment. Folks, the least what we all can do is, next time elect educated and honest people no matter whichever party. When administration goes to the hands of thieves and rogues don't expect taxes will be ever utilised for the public.

    DisAgree Agree [14] Reply Report Abuse

  • Pavan, Mlr

    Fri, Aug 28 2020

    Put tax on bjpee kangress..all political party MLA s Mps..let them.pay tax on lavish spending on birthday parties.

    DisAgree Agree [13] Reply Report Abuse

  • Darshit, Mangalore

    Fri, Aug 28 2020

    I bought an Airconditioner recently. I paid Rs. 28K of whcih the seller got only 22K - which included the manufacturing cost, warehousing, packing, shipping, advertising, marketing, Warranty, Amazon's commission and profit. The government took away Rs. 6122/- as GST (without doing a thing!). How much more do they want???

    Everything that I buy in a shop, a sizable amount of that goes to the government each and every time. Yes, I understand we need a government and it needs money to run an administration.

    Let's see it this way. Every government service I need, I have to pay for it. The roads are not free, I have to pay a toll. Electricity is not free, Healthcare is not free, Education is not free. Whatever is provided with the tag of "FREE" is horribly bad and mostly useless. On top of that I am forced to buy petrol at a rate that includes taxes which are more than the original cost of the petrol itself!

    So where does all the money go? This is not a discussion on political parties by the way, every government is mostly the same. Some are too corrupt, some are a percent or two less corrupt!

    By the way, good they call it "Luxury Tax", We know who gets the "luxury" part out of the tax.

    DisAgree [2] Agree [36] Reply Report Abuse

  • Ahmed K. C., Mangalore

    Fri, Aug 28 2020

    Sales of all such goods will eventually drop.

    DisAgree Agree [23] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Fri, Aug 28 2020

    People don't have Jobs or Money for Food ...

    DisAgree Agree [19] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Bangalore

    Fri, Aug 28 2020

    A slight increase in taxes takes away my thousand rupees
    And a substantial tax cut gives me a saving of thousand paisas.

    DisAgree [1] Agree [19] Reply Report Abuse

  • Gobardas, Mangalore

    Fri, Aug 28 2020

    Gutka tobbaco consumed by poor man, it cant be luxury goods, increse tax on online delivery food company, increse tax on privet luxury vechiles, increse tax on expensive foods which consumed by rich.

    DisAgree [5] Agree [18] Reply Report Abuse

  • Francis Lewis, Sastan

    Fri, Aug 28 2020

    High time all these politicians should stop in travelling with Luxury Vehicles. Even buying may please be stopped. Let them not stay in high fy Luxury Bungalows too.
    Increasing with the tax why are they kill Common people .

    DisAgree Agree [22] Reply Report Abuse

  • Sunil, Mangalore

    Fri, Aug 28 2020

    Is health Insurance and term life insurance a luxury nowadays. Why its charged at 18% GST.

    DisAgree [1] Agree [23] Reply Report Abuse

  • Ahmed, Bangalore

    Fri, Aug 28 2020

    Seize hidden money from these politicians, bureaucrats, reputed Temples and Dargahs, problem will get solved automatically and India will prosper.

    DisAgree [1] Agree [26] Reply Report Abuse

  • Sahil, Mangaluru

    Fri, Aug 28 2020

    Any politicians can justify what you mean by luxury goods.
    4 days life only luxury rest sll rust.

    DisAgree Agree [21] Reply Report Abuse


Leave a Comment

Title: Karnataka for higher tax on luxury goods as coronavirus hits revenue



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.

You might also like