Chandigarh, Dec 9 (UNI) Bowing to pressures from trade organisations, the Punjab Cabinet today gave its nod for the reduction of Turn Over Tax from one per cent to 0.25 per cent.
The Cabient also approved the draft legislation for imposing luxury tax on hotels, marriage places and banquest halls. The total tax realization in this regard was likely to be Rs 20 crore annually.
These decision were taken in a meeting of the Cabinet held under the chairmanship of Chief Minister Parkash Singh Badal.
The Cabinet also approved to abolish the octroi tax in the area of Cantonment Boards on the pattern of urban local bodies in the state. This would bring the cantonment areas at par with the urban areas, where octroi tax is not being leived.
The Cabinet also approved the conversion of the Punjab Value Added Tax (second amendment) Ordinance, 2007 (Punjab Ordinance No 4 of 2007) into Act through presentation of a bill in the forth coming session of the Vidhana Sabha.
Throgh another decision, the Cabinet also approved the enhancement in percentage of tax deducted from the amount payable from work contractors thereby bringing an amendment in section 27 of Punjab VAT Act, 2005.
The Cabinet also gave its go ahead to the conversion of Local Areas (Amendment), Ordinance 2007 regarding tax on entry of goods into an Act. The meeting approved the introduction of a bill for this purpose in the forth coming session of the assembly.
The Cabinet also decided to amend section 13 of the Punjab VAT Act, 2005 regarding provisions for input tax credit through presentation of a Bill in the forthcomign sesions of the asembly.
The Cabinet also approved to enhance the testing and inspection fee chargeable by the state Electrical Inspectorate in pursuance of the notifications issued by the government in 1990. The inspection revenue of the state was likely to increase from Rs 1.62 crore to Rs 3.24 crore annually with the implementation of this decision.
The Cabinet also approved the conversion of the Indian Stamp (Punjab Amendment) Ordinance, 2007 into a Bill for presenting in the ensuing session of Vidhan Sabha. The said Ordinance is aimed at reviewing the rates of stamp duty on the instruments of the conveyance.