Petrol, diesel, electricity, sugar as well as registration of property will now be costlier in Punjab with the state government deciding to levy various “fees” and taxes to mop up additional revenue of Rs 1,400 crore annually.
The decisions were taken at a Cabinet meeting, which was conspicuously chaired by Deputy Chief Minister Sukhbir Badal, without any reason being given about the absence of Chief Minister Parkash Singh Badal.
The Cabinet decided to introduce ‘ID Fee’ of Re one per litre on diesel and hiked the ‘ID Fee’ on petrol from the existing Re one to Rs two per litre. The hike will be more after the addition of local taxes – around 12 per cent on diesel and 30 per cent on petrol.
Electricity for all types of consumers will also become costlier as the state cabinet decided to introduce five per cent ID fee “on value of electricity consumed”, an official release said.
Similarly, the Cabinet also approved levy of ID Fee at the rate of 1 per cent on the purchase of immovable property within Punjab,” the release said.
Besides, sugar coming to Punjab from other states will also become costlier due to the introduction of Entry Tax which would be 11 per cent.
“These measures are likely to mop up additional revenue of nearly Rs 1,400 crore annually,” said the release issued by the Chief Minister’s Office.
Seeking to justify the additional burden residents of Punjab, the state government said it is “embarking upon a major programme to upgrade rural and urban infrastructure in the state, which would require a few thousand crores of rupees.”
The new fees will be charged from the residents after the issuance of notifications shortly.
No reason was given for absence of the Chief Minister from the Cabinet meeting. Official spokesman attached to him referred PTI to CM’s Media Advisor Harcharan Bains who did not respond to repeated telephone calls.
Probably for the first time, the media was also not allowed to enter the Chief Minister’s Secretariat where the Cabinet meeting was held.
Former Chief Minister Amarinder Singh criticised the Re 1 cess on each litre of diesel and petrol in the state.
“The Punjab government is passing on the burden of its own economic failure to the common man by way of punitive taxes,” he said in a statement.
Amarinder pointed out, the VAT on diesel in Punjab was already highest in the country. “Now, the additional cess will further disturb the monthly budget of everyone whether farmers or the common man,” he added.
The former Chief Minister maintained that while the cess on diesel will badly hit the agriculture and transport sector, the cess on petrol will hit the common people hard as they use two wheelers and small petrol driven vehicles.
He said that measures like the imposition of cess on fuel were only the signs of an ailing economy that is at the verge of bankruptcy.
“And if the government thinks it can retrieve the economy with such punitive taxes it is badly mistaken,” he said adding, “Rather it will affect the economy adversely”.
For Updates Check Economy News; follow us on Facebook and Twitter
