The Hindu : Other States / Punjab News : Punjab imposes levy on IMFL, country liquor

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Thursday, Mar 31, 2005

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Punjab imposes levy on IMFL, country liquor

CHANDIGARH, MARCH 30. A day after withdrawal of proposed cess on diesel and petrol, the Punjab Government today imposed levy of Rs 5 on country liquor and Rs 10 on Indian Made Foreign Liquor (IMFL) to generate additional revenue which was intended to come by way of imposing cess.

Announcing on the floor of the House, Finance Minister Surinder Singla, said the amount likely to generate by way of levy on per bottle of different types of liquor would be suitable for creating agriculture, diversification, infrastructure, research and development fund.

Winding up a debate on budget estimates for the year 2005-06, the Finance Minister also announced three per cent Dearness Allowance (DA) for government employees. The DA will become effective from January 1 this year, he added.

While directing the Finance Minister to find out alternative solutions, the Chief Minister had yesterday announced withdrawal of the proposed Re 1 per litre cess on diesel and additional 50 paise cess on petrol.

The Minister expressed concern over the status of Punjab when the country was in the race to become economic power.

Asserting that the State had the potential to become global hub for the supply of food to the world, Mr. Singla said, `` We may not have money, but we have shown in the budget the policy resources to generate revenue.''

Noting that the fiscal crisis looming large over the State had been controlled, Mr. Singla said the next general elections would be contested on the plank of development.

Substantiating his government's development works, the Minister said the government had focussed on having world class infrastructure so that industrial houses set up units in the State.

He said the budget had made suitable provisions for improving the road network, irrigation system and power sector.

Taking a dig at the opposition for its claim that the government was heading towards privatisation of several sectors, he assured the House that the government was not running away from its responsibility and added that no privatisation of government departments would take place.

He, however, said there was a need to create alternative systems of delivery that were cost effective.

To achieve development goals, new modern policies need to be adopted to speed up the development process, he said.

Stressing upon the need for reforms in the power sector, the Minister said the unbundling of State Electricity Boards had shown positive results in some States. ``Power could be generated to the amount of Rs 1000 crore if there is operational efficiency,'' he said adding that the resources and assets of the State need to be re-organsied.

Accusing the previous Akali Dal-BJP regime of failing to bring new industry in the State, Mr. Singla said at least 10,000 new jobs would be generated in the State with the setting up of units by some big private players including Wipro and TCS in the near future.

Accusing the previous Government of failing to bring new industry in the State, Mr. Singla said at least 10,000 new jobs would be generated in the State with the setting up units by some big private players including Wipro, TCS, in the near future. ``At least four textile houses are entering Punjab in the near future,'' he said and added that this could provide jobs to two lakh youngsters.

He said the State government was in touch with Rattan Tata for setting up a workshop of Indica car. Pulling up the previous government for the agriculture crisis in the State, he said the present government was responsible for growth in this sector. ``To improve the growth rate, it is imperative to give importance to education and health sector,'' he said. The aim of his government was to use funds of the private sector for the development process, he added.

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Punjab imposes levy on IMFL, country liquor