Contract octroi collection goes in Punjab
Tribune News Service

CHANDIGARH, Nov 15 — The Punjab Council of Ministers today approved a darft memorandum to be presented to the 11th Finance Commission on the Centre-state financial relations visiting Chandigarh tomorrow, says a press note.

It also took a number of decisions that are expected to give political benefits to the ruling combine. These decisions pertain to both urban and rural constituents.

Keeping in view the panchayat samiti elections due to be held before December-end, the ministry has approved certain amendments to the Punjab Panchayati Raj Act, 1994, aimed at ensuring a decisive say for the SAD-BJP combine.

The Council of Ministers has demanded that the grant and loan ratio of 30:70, fixed long back, be reviewed and fixed at 60:40. At the same time, the distinction between the Plan and non-Plan expenditure should be dispensed with.

Punjab also favours that the Finance Commision should implement at "alternative scheme of devolution" suggested by the 10th commission with effect from April 1,1996.

Bowing to public pressure and stand taken by some of the ministers like Mr Chiranji Lal Garg, the ministry decided to amend Section 24 of the Punjab General Sales Tax Act and withdraw the provision of punishment of imprisonment for certain infringements. It was felt that it was "unnecessary and administratively unwarranted" to empower junior officials with unlimited powers to imprison or prosecute people which could lead to arbitrary exercise of authority, exploitation, harassment and corruption. An ordinance will be issued to effect this change in the Act. The ministry also decided to do away with the system of giving octroi collection on a contract basis through auction. This system was criticised by traders. No fresh contracts will be given after the expiry of the current ones.

The Department of Local Government shall ensure that there is no fall in the present level of revenue accuring to the municipalities concerned.The contractual octroi collection and consequential "harassment" was cited as one of the factors for poor performance of the SAD-BJP candidates in the recent Lok Sabha elections.

The ministry also approved sales tax exemption on gold and silver medallions released by the Punjab Small Industries and Export Corporation on the eve of the tercentenary celebrations of the birth of the Khalsa. The sale of medallions by March, 2000, is expected to be of the order of Rs 1.43 crore entailing sales tax of Rs 6,29,200.

Another important decision pertains to amendments to the Punjab Panchayati Raj Act, 1994. Today's decision is reversal of the amendments this government had made in April,1998. It was allowed to amend Sections 99 and 100 of the Act through an ordinance to provide for (1) indirect election of members to the panchayat samitis from amongst sarpanches to the extent of 70 per cent of the total number of seats; (2) reducing the total strength of members in a samiti to a maximum of 15 and a minimum of 10; (3) decreasing the number of directly elected members to a maximum of five and a minimum of three and increasing the norm for determining a constituency for direct election from a population of 6,000 per constituency to 30,000 per constituency.