Punjab Cabinet on Tuesday gave the go-ahead for the draft model GST Bill to be put before the House in the budget session of the State assembly.
The enactment of State Goods and Services Tax (SGST) Bill, duly approved by GST Council and vetted by legislative Department of the Union Ministry of law, will pave the way for the repeal of the Punjab Municipal Fund Act, 2006, and Punjab Municipal Infrastructure Development Act, 2011.
It will boost the State exchequer by enabling 100 per cent value added tax (VAT) and additional tax thus collected on petroleum products and liquor to be deposited in the treasury.
The Cabinet also approved the report of the Fifth State Finance Commission, submitted to the Punjab Governor, that recommends continuation of existing devolution of four percent share of net proceeds of State Taxes to local Bodies for 2016-17 to 2020-21.
“This will result in transfer of Rs 4,364.40 crore (estimated) to both rural and urban local bodies, with the State Government accepting the Commission’s recommendations regarding share of Urban local Bodies and Inter-se distribution among PRIs,” said a spokesperson.
The cabinet has also accepted other main recommendations of the Commission, such as compensatory payments in lieu of Octroi, Income from levy of Octroi on Electricity, Share of Excise Duty and Auction Money, Urban local Bodies in lieu of Octroi on liquor, distribution methodology for devolution among UlBs and three tiers of PRIs and inter-se distribution of local Bodies, with some amendments.
It was decided that Commission’s some other recommendations would be examined by the concerned Administrative departments before taking a final decision on them.
The Cabinet also decided to bring the draft bill regarding the appointment of Administrators by way superseding existing nominated Market Committees by amending section 12 of the Punjab Agricultural Produce Markets Act, 1961, in the budget session.
It also decided to introduce draft bill to amend the Punjab Agricultural Produce Markets Act, 1961.