Chandigarh, [Indrapreet Singh]. The people and professionals of Punjab can get a huge blow very soon. Taxes are being prepared for a huge hit on them. The Punjab government can drastically increase the professional tax applicable in the state. The Exports Committee, headed by Motenk Singh Ahluwalia, former deputy chairman of the Central Planning Commission, has recommended a steep increase in professional tax. The committee has asked to increase it from Rs. 2400 to Rs. 20 thousand annually. If this growth happens, there will be a huge burden on entrepreneurs and employed people.
Recommendation of expert group committee to overcome Kovid’s increased economic crisi
To overcome the damage caused to the economy of Punjab due to Kovid-19, the committee headed by former Deputy Chairman of Planning Commission Montek Singh Ahluwalia has submitted the first primary report of its recommendations to the government. The final report will be given in December. In the first report, the committee recommended increasing the professional tax from Rs 2400 to Rs 20 thousand annually. That is, the professional tax being collected from professional people should be increased from Rs 200 to Rs 1650 per month.
Montek Singh Ahluwalia Committee said – Professional tax should be increased from 200 to 1650 rupees per month
The committee said, according to Article 276 of the constitution, professional tax has been imposed on professional tax for 32 years (from 1988 till now). It no longer has any justification. The Central Government and the Finance Commission should be urged to increase this. At the same time, there are many such recommendations in the report, like many Planning Commission, NITI Aayog and Finance Commission have been doing before.
Recommendation of the committee – salary of state employees should be equal to central pay scale, should not be given DA
The suggestion given to employees may increase the resentment among the employees. The committee has said that there is a lot of difference in the salaries of central and state government employees. The pay scale of the state government is high. All employees are paid the same as the central pay scale.
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The committee has said that at this time employees who are getting more salary than the central pay scale should not be cut, but they should not be paid extra until the workers are equal to the central pay scale. The state government has now recommended not to give 16 per cent installment of the deferred DA. Police personnel are far more in proportion to the state’s population. Therefore, new recruitment in the police should be stopped.
Committee said – Government should be sold and the property given on lease
The committee, based on the 20-member expert group, has suggested raising the tax on liquor and selling government land. In large cities, it has been recommended to sell the land to industrial, commercial and residential sectors by handing over the land to development agencies. Whereas, for regularization of illegal colonies, Karnataka has been asked to adopt the formula and arrange for fine according to plot size.
According to the committee, the Karnataka government has raised Rs 15,000 crore this year by taking this step. Along with this, it has been recommended to sell these due to the very low rent on the leased land or other property of the municipal corporations, council.
Electricity subsidy should be discontinued
The committee has also raised questions on giving electricity subsidy to farmers. The committee says that with increasing the burden on the budget, the environment is being harmed and only big farmers are getting the benefit. The committee has talked about promoting irrigation through solar pump. With this, the old thermal plant which is getting expensive electricity has been suggested to be closed and to set up an industrial park on their land.
Emphasis should be given on seed bank
The committee has also given suggestions for reforms in the Agricultural Produce Marketing Committee (APMC) Act and tax reform. At the same time, instead of crops, Punjab should focus on becoming a seed bank. This will benefit Punjab.
