Congress-led Punjab Government is set to run its social security and welfare schemes from the pocket of its residents. The State Government has announced imposition of surcharge on the registration of new vehicles to fund its social welfare schemes like old age pension and health insurance.
Eyeing Rs 300 annual revenue, the Government has imposed one per cent surcharge on the registration of vehicles, besides 10 per cent surcharge on the value of goods to be carried by transportation vehicles.
One percent surcharge has been imposed on the value of motor vehicles and it will lead to a collection of about Rs 200 crore revenue, said the Government official, adding that 10 per cent surcharge has been levied on the transportation vehicles wherein tax will be imposed on the value of goods which are going to be transported, which would generate Rs 100 crore revenue.
Imposition of new taxes came over seven months after the State Assembly passed the Punjab Social Security Bill. At the time, the State Finance Minister Manpreet Badal had clarified that the Bill authorise the Government to levy the tax, if needed be, on the fuel, liquor, vehicle registration, and electricity bills under Punjab Value Added Tax, 2005; Punjab Motor Vehicles Taxation Act, 1924; Punjab Electricity (Duty) Act, 2005; Punjab tax on Lotteries Act, 2005; and Companies Act 2013.
The Act says “Social Security Surcharge” may be imposed not exceeding Rs two per on sale of petrol and/or diesel which are subject to VAT 1evied under the Punjab VAT Act, 2005. Besides, surcharge not exceeding one percent of value of vehicles registered in the State of Punjab, which are subject to payment of tax under the Punjab Motor Vehicles Taxation Act, 1924 may be levied.
It added, “Social Security Surcharge not exceeding 10 percent of Motor Vehicle Tax on transportation vehicles in the state of Punjab which are subject to such tax under the Punjab Motor Vehicles Taxation Act, 1924; a Social Security Surcharge at the rate of five percent of monthly electricity bill, provided that the minimum liability of the consumer shall not be less than Rs 25 per month and the maximum liability of the consumer shall not exceed Rs 10,000 per month”.
The official said that th eState Government would initially be spending collection from surcharges on meeting expenditure on account of old age pension and health insurance scheme. Punjab is annually spending about Rs 1,500 crore on paying pension.
While the total cost of annual premium of health insurance scheme — Pradhan Mantri Jan Arogya Yojna (PMJAY) - Ayushman Bharat — is pegged at around Rs 850 crore and state's share is worked out at Rs 350 crore.
The Punjab Cabinet had already given its in-principle approval to the implementation of the PMJAY while extending the central scheme to cover over 42 lakh families.
A trust to manage social security funds under the chairmanship of Chief Minister Capt Amarinder Singh has been set up. “All the collection from surcharges will be managed by the trust,” the official said.