Himachal Pradesh: Govt sees revenue boost from uniform tax regime
The Himachal government anticipated a marked increase in revenues from the uniform tax structure, which other states and union territories in the region - Punjab, Haryana, Delhi and Chandigarh - have agreed to implement.
When the new regime becomes effective uniform tax rates will apply to petroleum, tobacco and automobile products. Currently there is wide variation in value added tax on various products. Being a consumer state, Himachal has been bearing the brunt of revenue losses as VAT levied on many items, especially tobacco and fuel, is less in several neighbouring states.
In Himachal VAT on petrol is 27%, which is less than that charged in adjoining states, while on diesel it is 11.5%. Several motorists prefer to tank up their vehicles at gas stations in nearby states, causing huge revenue losses to the already beleaguered exchequer.
Principal finance, excise & taxation secretary Shrikant Baldi said uniform taxation would benefit the state . "There is huge difference in VAT on tobacco in Himachal and Haryana. With uniform taxation we will not lose but gain," he told this reporter.
"A committee of taxation secretaries of all states who attended the recent meeting has been set up and would give its recommendation for adopting the uniform tax structure. However, Delhi has demanded its neighbouring states - Uttar Pradesh and Rajasthan - should also be included, since Delhi has same issue with Rajasthan and UP as Himachal has with Haryana and Punjab," he added.
There is a big difference in VAT levied on tobacco products in Himachal and Haryana due which traders resort to various tactics to evade tax. Not only tobacco but VAT rates on petrol and diesel also differ in northern states. VAT on petrol in Haryana is 21%, in Uttar Pradesh 26.8% and in Delhi it is 20%. VAT on diesel in Rajasthan is 22%, in Haryana 12.07%, in UP 17.48% and in Delhi it is 12.5%.
"Lower VAT rates in Punjab and Haryana have caused huge revenue losses to the state. If our VAT rates are brought on par with those being charged there fuel prices will be more or less the same everywhere," an excise official said.
Himachal earns annual revenues estimated at Rs. 500 crore from value added tax on petrol and diesel and Rs. 70 crore from on tobacco products.
The Shiromani Gurdwara Parbandhak Committee on Wednesday decided to display the portrait of slain Babbar Khalsa International militant Balwinder Singh Jatana — who in 1990 had killed government officials supervising the construction of disputed Sutlej-Yamuna Link (SYL) canal — at the Central Sikh Museum in Golden Temple complex, days after singer Sidhu Moose Wala glorified Jatana in his posthumously released song 'SYL'.
Former Chief Minister H D Kumaraswamy on Wednesday listed '16 family dynasties' in the Karnataka unit of the BJP aKumaraswamy'she hit out at the saffron party for repeatedly calling the JD(S) a dynastic party. Kumaraswamy's outburst was against the repeated accusation of the BJP of calling JD(S) a dynastic party. The JD(S) leader lashed out against the BJP today for calling him a 'lucky dip CM' in a set of tweets.
Ninety per cent of students at the Jawaharlal Nehru University are apolitical and only 10 per cent are "troublemakers" who think they can build their political careers at the varsity, Vice Chancellor Santishree Dhulipudi Pandit said on Wednesday. The JNU is the graveyard of political careers. You know last time what happened, all who did (such) politics are in jail," Pandit said. Kanhaiya Kumar is now in the Congress party.
A 42-year-old woman was allegedly beaten up and forced to carry her husband on shoulders in Khargone district for allegedly leaving her husband and staying with her uncle, police said on Wednesday. This is the second such incident reported from Madhya Pradesh in the past two days when a tribal woman was harassed for leaving her husband's house. He came to the village in Khargone and beat up her uncle.
Mumbai A man from Uttar Pradesh has been arrested for allegedly hacking a city woman's Instagram account days before her wedding and announcing that she was going to run away before the wedding. The woman, a resident of Goregaon east, was engaged in May and got married last month. The police officers then learnt that the number from which the woman's Instagram page was hacked was being used in Uttar Pradesh.