The Hindu : Front Page : Ban likely on sale of arrack

Online edition of India's National Newspaper
Monday, Jan 01, 2007
ePaper

Front Page

Front Page

Ban likely on sale of arrack

Staff Reporter

`The ban will cause a revenue loss of around Rs. 700 crore'

BANGALORE: The State Government is determined to ban the manufacture and sale of arrack in the New Year, despite the fact that it will cause a considerable loss of revenue, Deputy Chief Minister B.S. Yediyurappa has said.

The next couple of months in the run-up to the Budget 2007 would be spent in debating ways and means to implement the ban and to frame the policy, Mr. Yediyurappa told presspersons on Sunday.

He said tax collection under various heads for the current year (up to December 2006) ranged from 69.75 per cent (Motor vehicles tax) to the upper limit of 92.25 per cent (Stamps and Registration Fee). While the excise revenue target for 2006-07 is Rs. 4,100 crore, Rs. 3,153 crore has been collected up to December 2006. Revenue from arrack forms about 15 per cent of this, and banning it would cause a revenue loss of around Rs. 700 crore.

Total commercial tax collection up to the end of December 2006 is Rs. 10,150.11 crore, against a collection of Rs. 8,319.74 crore during the corresponding period last year, marking an increase of Rs. 1,830.37 crore. The growth rate recorded is 22 per cent. Many cases of large-scale evasion of tax by dealers in plywood-lamina were detected. In one case, two "dealers" were found to have evaded tax to the tune of Rs. 1.5 crore using fake permits and other documents.

Printer friendly page
Send this article to Friends by E-Mail

Front Page

News Update

Stories in this Section