Alleging that demonetization has severely affected the State’s economy, Congress MLC V.S. Ugrappa expressed the fear that the State may face a revenue loss of Rs. 10,000 crore on account of the move.
Participating in the discussion on drought in the Council, he said that with the people facing a shortage of cash, their purchasing power is crippled.
“Buying brings revenue in the form of various taxes to the State, but because of the demonetization, this revenue is set to dip, which is a loss to the State exchequer,” he said. Pointing out that the Centre is expecting additional tax revenue due to the impact of demonetization, Mr. Ugrappa demanded that the additional revenue is shared with drought-affected States, such as Karnataka, to provide relief to farmers.
Participating in the discussion on drought in the Council, he said that with the people facing a shortage of cash, their purchasing power is crippled.
“Buying brings revenue in the form of various taxes to the State, but because of the demonetization, this revenue is set to dip, which is a loss to the State exchequer,” he said. Pointing out that the Centre is expecting additional tax revenue due to the impact of demonetization, Mr. Ugrappa demanded that the additional revenue is shared with drought-affected States, such as Karnataka, to provide relief to farmers.