Punjab abolishes octroi on goods ahead of polls

With assembly elections round the corner, the Congress government in Punjab today approved abolishing octroi on all goods except electricity, liquor and petroleum products with effect from September 1, 2006. This will result in an annual revenue loss of Rs 800 crore to the state exchequer.

Chief Minister Amarinder Singh said the state government had registered VAT returns of Rs 5,300 crore against the target of Rs 4,600 crore and another Rs 250 crore would be collected in the coming months. The surplus fund would help to offset the impact of abolition of octroi, he added.

The fund will be distributed by channelling VAT revenue into a municipal development fund, to be operated by the department of local government.

The department will ensure rational redeployment of employees of municipal councils so that they would suffer no adverse impact from the new scheme of things and these employees would not be retrenched under any circumstances.

All the urban local bodies would remove about 500 octroi posts in the state from September this year.

Residential houses up to 5 marlas in all municipal towns will also be exempted from water and sewerage charges. This will mean a loss of Rs 195 crore to municipal councils.

Singh also announced that non tradable capital subsidy bonds would be issued to those industrialists whose subsidy claim of Rs 500 crore (approximately) was pending with the department of industries. These bonds will be issued in two years "" Rs 250 crore each year.

The Council of Ministers also approved the Textile Policy-2006 to grant special package of incentives for the growth of the textile industry in Punjab.

To give a boost to the textile industry in the state, the new policy will focus on technology upgrade, productivity enhancement, quality consciousness, cluster development, strengthening of raw material base, integrated human resource development and special benefits to the textile industry.

The Council of Ministers also approved the formulation of the Punjab Regulation of Saw Mills Veneer and Plywood Industries Rules 2006 in the light of the directions of the Supreme Court of India.

It also gave approval for taking the posts of the District Sainik Welfare Officers (Class-I) out of the preview of the Punjab Public Service Commission and to recruit by Departmental Selection Committee.

The Council of Ministers also approved the amendment in the Punjab Village Common Lands (Regulation) Rules, 1964.

The Council of Ministers also gave nod for opening of sub treasury at Bassi Pathana in Fatehgarh Sahib and Qadian in Gurdaspur district.

The Council of Ministers also gave approval to enhance the pay perks of Law Officers of the office of Advocate General, Punjab.