The Hindu : Professional tax goes in Haryana

Online edition of India's National Newspaper
Tuesday, Feb 17, 2004

New Delhi

New Delhi

Professional tax goes in Haryana

By Our Special Correspondent

CHANDIGARH, FEB.16. The Haryana Finance Minister, Sampat Singh, today announced withdrawal of professional tax in the State in response to demands from the public and members of the State Assembly.

Replying to the debate on the State Budget for 2004-2005 in the House, he said this would benefit a large number of people. The professional tax was levied in May 2000.

Noting that this was the fifth consecutive budget presented by him, he said it would give impetus to overall economic development in the State. Special emphasis had been laid on the qualitative improvement of the sectors of power, water supply, education, roads, transport, industry, agriculture, rural development and social welfare. This reflected that the State economy was progressing in a positive direction and Haryana was all set to achieve new heights of development.

Expressing satisfaction on the growth of the secondary and tertiary areas, he said that at current prices, the Gross State Domestic Product (GSDP) had been estimated at Rs.65,837 crore in 2002-03 as against Rs.60,212 crore in 2001-02, recording an increase of 9.3 per cent. And according to quick estimates, the GSDP at constant prices had been estimated at about Rs.36,876 crore as against Rs.35,062 crore in the previous year, thereby recording a growth of 5.2 per cent, mainly due to good performance of manufacturing, trade and transport sectors. The per capita income at current prices had grown to Rs.26, 632 in 2002-03 as against Rs.24, 820 in 2001-02.

He said that the present Government had shown a remarkable political will and courage in implementing the Value Added Tax (VAT) as no other State in the country had done so. Steps had been taken for reducing non-productive expenditure for improvement and simplification of tax structure to generate more revenue and bring financial reforms in the State. A composite strategy of revenue augmentation, expenditure curtailment and debt management had been adopted. He specified that no retrenchment had been done and the surplus staff re-adjusted and was now being properly utilised.

While asserting that there had been a decline in the Central funds, he regretted that the Eleventh Finance Commission had been less rewarding to performing States like Haryana. As per the recommendations of the Commission, the share of Haryana in Central taxes had reduced to 0.944 per cent from 1.238 per cent, causing a financial loss of Rs.1, 100 crore to the State during 2000-2005.

Refuting the allegation raised by the Leader of Opposition, Bhupinder Singh Hooda, that there had been no increase in foreign direct investment in the State, he clarified that last year Rs.1,857 crore was invested as against Rs.400 crore in 2001 and Rs.347 crore in 2000.

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