Karnataka Budget 2023: Know about Siddaramaiah Govt’s New Taxes

Bengaluru: Karnataka is also the leading state in the country with the highest tax payers. Now the state government has also come up with a new proposal to increase its tax collection. CM Siddaramaiah, who has presented the state budget for 2023, has proposed new taxes. Know its detailed information here.

The Congress government has taken power in the state by giving a lot of assurances, out of which the share of 5 guarantees is huge. Thus, the important responsibility of setting up the funds for the guarantee scheme is now on the government. For this reason, the state government has decided to implement new taxes in many sectors. So in which sector is the tax increase? And which department has been given the highest tax collection target? Read further for complete information.

Tax proposal of Siddaramaiah government

1) Karnataka, one of the largest states in terms of GST tax collection, has achieved a growth of 21% in the first quarter of the current year. Through this, the KGST revenue collection has increased to 18,962 crores in the first quarter of the current year.

 

2) For effective tax administration and to provide better connectivity to entrepreneurship, the state government has promised in the budget for the early implementation of 4 new divisions in Bangalore and surrounding districts.

3) Especially for the first time a separate section for the highest tax payers has been decided to be set up in Bangalore city.

4) Decided to use artificial intelligence and machine learning technology for data analysis & enhancing revenue collection.

5) The revenue collection target of the Commercial Tax Department for the year 2023-24 has been set at Rs 1,01,000 crore. If this is the aim of commercial taxation, then there is information on excise taxation.

Beer, oil more expensive!

1) Yes, now again the state government has increased the excise duty. Liquor lovers are grumbling that it is common for every government to raise excise duty or tax every time it presents a budget.

2) The rate of additional excise duty on all 18 declared price slabs of liquor shall be per cent on the prevailing rates as per Annexure (a). Now the state government has proposed to increase it by 20 percent.

3) Henceforth, additional excise duty on beer is proposed to be increased from 175 per cent to 185 per cent. The state government claims that even after the increase in excise duty, the price of liquor in our state will be lower than neighboring states.

4) A total revenue collection target of Rs 36,000 crore has been set for the Excise Department by 2023-24 through more effective enforcement and control measures.

5) Thus, the background of the increase in excise duty by the state government has led to an increase in the price of oil i.e. alcohol. In addition to this, the price hike is also guaranteed for registration and stamp duty.

Increase in registration and stamp duty as well

1) For the year 2018-19, all immovable property guideline rates of the state were revised and implemented from 01.01.2019. Later, the state government said that the guideline rates will not be revised due to Covid-19.

2) The Siddaramaiah government said that due to physical changes in current assets and wide variation in market rates, it is necessary to set a proper guideline rate to correct this.

3) For this reason, the Congress government of the state has informed that it is intended to revise and implement all immovable property guideline rates in the current year.

4) The state government has set a tax collection target of Rs 25,000 crore for the Registration & Stamps Department for the year 2023-24. In addition to this, the transport department has also been given a tax collection target.

What is the tax target for the transport department?

1) The Karnataka Motor Vehicle Tax Act is intended to be amended and simplified.

2) Thus simple software will be introduced for accurate verification of motor vehicle tax transactions. The Siddaramaiah government has said that the tax levied on selected vehicle categories will be revised.

3) A total revenue collection target of Rs 11,500 crore has been set for the transport department for the financial year 2023-24.

Department of Mines and Geology information

1) The State Government is committed to adopt scientific and technical methods in the Department of Mines and Geology and implement necessary reforms to promote sustainable, safe and scientific mining and increase revenue collection by monitoring minerals and sub-minerals.

2) A revenue collection target of Rs 9,000 crore has been set for the Department of Mines & Geology for the year 2023-24.

State Budget Estimates 2023-24

1) Estimated revenue collection in the state for the year 2023-24 is Rs 2,38,410 crore. In this, the state’s total own tax including GST relief is estimated at Rs 1,75,653 crore.

2) Expected to collect Rs 12,500 crore from non-tax revenue. The state government has expected Rs 13,005 crore from the central government in the form of grant-in-aid, including Rs 37,252 crore as central tax share.

3) Total debt of Rs 85,818 crore, non-debt receivables of Rs 23 crore & debt recovery amount of Rs 228 crore is estimated in addition to royalty deposits.

4) The total deposit in Karnataka for the year 2023-24 is estimated at Rs 3,24,478 crore.

5) In 2023-24, the total expenditure is estimated to be Rs 3,27,747 crore, including revenue expenditure of Rs 2,50,933 crore, capital expenditure of Rs 54,374 crore and loan repayment expenditure of Rs 22,441 crore.