For its political gains, the SAD-BJP Government does not mind a few monetary losses. With the State staring at the 2014 lok Sabha elections, the Punjab Cabinet on Monday took a slew of decisions to woo various sections of voters including lowering VAT on steel industry by 50 per cent and on tobacco products by 25 per cent, reducing advance tax on finished goods and property tax on residential properties, exempting city bus service from all motor vehicles taxes, among others.
TAX EXEMPTIONS
Criticised for imposing number of taxes recently, the state Cabinet has decided to slash the rate of VAT from 4.50 per cent to two per cent, besides reducing the advance tax on finished goods to 2.5 per cent. The rate of surcharge would remain the same, that is 10 per cent.
RElIEF IN PROPERTY TAX
Cabinet also gave green signal to the State local Government department’s proposal to give 10 per cent rebate on Property Tax deposited up to March 31, 2014, instead of earlier date of December 31, 2013.
Similarly, the Cabinet also gave nod for reducing property tax rate on residential properties under rent from existing 7.5 to three per cent.
SOCIAl SECURITY SCHEME FOR BUSINESS COMMUNITY
The scheme would cover 1,86,543 dealers or businessmen having turnover up to Rs 1 crore, but not been covered under any other social security scheme of Punjab.
Under this scheme, three insurance covers would be extended to the beneficiaries — life insurance (accidental death and disability insurance) to provide a cover of Rs 2lakh per beneficiary including accidental death and permanent or partial disability, health insurance cover to provide a cover for meeting expenses of hospitalisation for medical procedure up to Rs 50,000 per beneficiary, and Fire Insurance, a cover of Rs 5 lakh per beneficiary for the losses caused due to fire would be available.
PENAlTY ON ERRING OFFICERS UNDER RTS ACT
To instill sense of promptness and responsibility, the Cabinet also okayed to promulgate an ordinance for empowering the Right to Service Commission to levy penalty on the designated officers, who fail to
provide services within stipulated time period, by amending section 17(1) of the Punjab Right to Service Act 2011.