M A I N   N E W S

Defence families will have to shell out more
Prabhjot Singh
Tribune News Service

Chandigarh, July 17
The families of defence personnel in Punjab will have to shell out a minimum of Rs 100 to Rs 150 per month more than their civilian counterparts as the taxation laws revised by the Punjab Government yesterday become effective later this month.

While the impact of the increase in sales tax on petrol from 20 per cent to 25 per cent will be uniformly applicable on all sections, the defence personnel will now be required to pay sales tax at 50 per cent of the normal taxation rates on all items purchased by them from the Canteen Stores Department (CSD). Till now, they were exempt from payment of any sales tax on purchases from CSD outlets.

A quick survey conducted by The Tribune reveals that besides an average household, the revised taxation laws will also hit the lubricants-based industry hard.

Contrary to the initial announcements that the revised taxation rates would become effective from midnight last night, they would be implemented only after state government issues notifications within seven or 10 days.

Depending upon the usage, an average middle class family with two vehicles — a four-wheeler and a two-wheeler — will have to shell out Rs 175 to Rs 250 more per month on petrol alone. Because of the increase in sales tax from 20 to 25 per cent, the effective tax works out to be 27.70 per cent from 22.20 per cent.

In Ludhiana, the revised rate of petrol will be Rs 33.65 a litre against Rs 31.92 at present. Average middle class families, according to a survey, consume between 100 and 150 litres of petrol a month.

In Jalandhar, petrol is available at Rs 31.85 per litre and after revision it will be Rs 33.58 per litre. “We are selling at old rates,” says Mr Amrit Pal Singh, a petrol pump owner of Jalandhar.

Petroleum dealers of districts bordering Chandigarh, Haryana and Himachal would also be hit hard by the increase in sales tax as the normal tendency of vehicle owners would be to get their tanks filled to the top by travelling some distance into the neighbouring state. For example, residents of SAS Nagar, Dera Bassi, Zirakpur and Banur would prefer to skip the petrol pumps of their area and go to Chandigarh or Panchkula.

But defence families will have to pay sales tax, though at a lower rate, on all their purchases from the CSD outlets. At present, Punjab has a basic three-tier taxation system for households with various items chargeable at 4 per cent, 8 per cent and 12 per cent sales tax. There is a 10 per cent surcharge on sales tax also.

The family of a defence officer residing in Punjab and making purchases of its monthly quota of ration, including soaps, oils, shampoos, confectionary , batteries and other items, will now be required to pay between Rs 100 and Rs 150 more as sales tax.

The worst hit will be the lubricants-based industry.

With inputs from Amarjit Thind (Ludhiana) and J.S. Malhotra (Jalandhar).