Chhattisgarh becomes first state to pass resolution in support of demonetisation

Govt exempts VAT on Point of Sale device to promote e-payment

Chhattisgarh became the first state in the country to pass a resolution from its state legislative assembly in support of demonetisation that Prime Minister Narendra Modi announced on November 8.

Chief Minister Raman Singh on Tuesday moved a resolution in the Chhattisgarh Legislative Assembly in support of Prime Minister’s move. The resolution came up for discussion on Wednesday— the second day of the five-day winter session of the state assembly.

After day-long discussion, the House passed the resolution in the evening by 16 votes. While 41 members voted for the resolution, 25 opposed it. “The move of the Prime Minister (Narendra Modi) was historic and courageous,” Singh said in the House. 

Singh also announced to exempt POS from the orbit of Value Added Tax (VAT). The device used for plastic money payment had 14% VAT. Now, there would be full exemption of VAT on the POS.

Chhattisgarh had become the first state to exempt VAT on the POS.

The opposition Congress members opposed the resolution and said people were facing problem. “There would be an adverse affect on the economy and the demonetization was no way going to help curbing black money,” Leader of Opposition T S Singhdeo said. 

He added that the government should feel shame for failing to control black money. Singhdeo said the Centre had not done proper home work and launched Rs 2000 note that did not had any logic or relief for the people.