Budget session: Gujarat Assembly passes four amendment bills

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Gujarat Assembly passes four amendments
Gandhinagar, July 2: On the second day of the budget session of Gujarat Assembly today four bills amending the existing laws were passed.

The legislature passed Gujarat Taxation Laws (Amendment) Bill-2014, Gujarat Court-Fees (Amendments) Bill-2014, Gujarat Civil Courts (Amendment) Bill-2014 and Gujarat Agricultural Universities (Amendment) Bill-2014.

While tabling the taxation laws amendment bill, finance minister Saurabh Patel said it will give the government powers to recover dues from defaulter firms.

The state government will be now treated as 'a secured creditor' for recovery of taxes under Gujarat Tax on Professions, Trades, Callings and Employments Act, Gujarat Entertainment Tax Act, Gujarat Tax on Luxuries (Hotels and Lodging) Act, and Gujarat Tax on Entry of Specified Goods into Local Areas Act.

"Today, when a firm is declared defaulter, secured creditors are given priority in recovery of dues. After that, unsecured creditors are given their share from whatever is left. As per the existing laws, state can only collect dues for unpaid VAT as a secured creditor, but there was no such policy for unpaid professional tax, entertainment tax, luxury tax and entry tax," said Patel.

"With the amendment, government will have the first right to collect dues from defaulter. This will decrease our burden of outstanding debts," Patel told the house. Gujarat Court Fees (Amendments) Bill-2014 reduces the court fee, which a litigant seeking a higher compensation for a land acquired by the government has to pay, from 50 per cent of ad-velorem fee to 10 per cent.

PTI

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