Pb govt hoping to notify Development tax next week

The Amarinder Singh led government is likely to notify next week the Punjab State Development Tax , which is expected to generate a revenue of Rs 150-200 crore, a minister said.

"Rules are being framed. Within next one week, we should be able to notify it," said state Finance Minister Manpreet Singh Badal here today. Badal also said that the state was on the recovery path and finances were looking better.

The government had announced to impose Rs 200 per month Punjab State Development Tax in the budget session last month.

As part of the additional resource mobilization measures, the state development tax was proposed to be imposed on the income tax payees, who are engaged in professions, trades, callings and employments, earning Rs 30,000 per month and above.

 

Punjab government had cited states like Maharashtra, Gujarat, Karnataka, Andhra Pradesh and Tamil Nadu which have been collecting this tax for a long time.

Despite opposition parties criticising the government for the monthly Rs 200 development tax, the state authorities had justified this tax while stating that a dedicated fund would be created to meet social obligations such as payment of financial assistance on account of pensions to elderly, widows, destitute, besides physically challenged and others.

Asked how much state expected to mobilize revenue from development tax, Badal said it could be around Rs 150-200 crore.

Asked when the surcharge on petroleum products was going to be imposed, Badal said it has not been decided yet.

Punjab had also proposed to levy a social security surcharge not exceeding Rs two per litre on the sale of petrol and/or diesel which are subject to Punjab VAT levied under Punjab VAT Act, 2005.

The finance minister asserted that the state was on recovery path. "As far as finances are concerned, we have got a grip on situation...Punjab is on recovery and finances are looking better," he said.

Punjab, in the budget tabled in the Assembly last month, had projected revenue deficit of Rs 12,539 crore for current fiscal as against deficit of Rs 14,310 crore of the revised estimated for 2017-18.