Cost of living gets dearer in Punjab

Rajmeet Singh

Tribune News Service

Chandigarh, March 28

With the Punjab Vidhan Sabha on Wednesday passing the Punjab Social Security Bill, 2018, and the Punjab State Development Tax Bill, 2018, the Capt Amarinder Singh-led government has imposed fresh taxes on Punjab residents, generating an additional revenue of Rs 1,500 crore.

It plans to use this money not only to fund social welfare schemes, but to also give unemployment allowance to the state's jobless youth, as promised by the Congress in its election manifesto.

 Petrol and diesel, registration of vehicles, motor vehicle tax, electricity bills and liquor will become dearer in the state by way of the Social Welfare Security Bill. 

Finance Minister Manpreet Badal, tabling the Bill in the House, said it would allow the state to set up a social security fund outside the Consolidated Fund to finance social welfare schemes.“The government aims to set up the fund under a trust headed by the Chief Minister for timely payment of pension to senior citizens, widows and the disabled, health and accident insurance, post-matric scholarship to SC/ BC students, marriage grants to SC girls and assistance to acid victims.”

Through development tax, the government aims to set up a regulatory framework for guidelines on various welfare schemes and development works.

Levies under Social Security Bill

• Surcharge not exceeding Rs 2 per litre on sale of petrol/diesel, subject to Punjab Value Added Tax Act, 2005
• Surcharge not exceeding 1 pc of the value of vehicles, subject to Punjab Motor Vehicles Taxation Act, 1924
• Surcharge  at 5 per cent of monthly electricity bill, minimum liability not less than Rs 25 per month and maximum not more than Rs 1,000 per month
• Surcharge not exceeding 10 pc excise duty and licence fee, as chargeable under Punjab Excise Act, 1914

Levy under Development Tax Bill

• Rs 200 per month on all persons assessed under the head 'Income from salaries/wages" as per the Income Tax Act, 1961, and those under the head 'business and profession'
• Applicable on those with an income of Rs 30,000 per month