The Punjab Cabinet today approved the summoning of tenth session of 14th Punjab Vidhan Sabha from March 12 for passing the annual budget for 2015-16.A decision to this effect was taken by the Cabinet in its meeting held under the Chairmanship of Punjab Chief Minister Mr. Parkash Singh Badal here at Punjab Bhawan this evening. Disclosing this here today a spokesperson of the Chief Minister's Office said that the budget session would commence on March 12 afternoon at 2 pm with Governor’s address and the budget for 2015-16 would be presented on March 20 by the Finance Minister. The session would be adjourned sine die on March 25. The Cabinet also gave nod for amending Punjab State Civil Services (Appointment by combined Competitive Examination) Rules 2009 to recruit Deputy Superintendent (Jails)/ District Probation Officers (Grade- II) through the combined competitive exam to be conducted by the Punjab Public Service Commission (PPSC), Patiala. Likewise keeping in view the administrative requirements, the Cabinet also gave a green signal for amending Punjab Civil Services (General and Common Condition of Services) Rules, 1994 for inserting rule 14 A and 15A to provide minimum educational and other qualifications for appointment to the post of senior assistant and senior scale stenographer respectively through direct and promotion quota.
In order to save the shopkeepers from ‘Inspector Raj’ and make the Rahat scheme more attractive, the Cabinet also decided to extend the ambit of Rahat scheme to the entire state including Corporations and class- I cities. Likewise, the lumpsum tax for dealers having annual turnover of less than Rs 10 lakh has been reduced and now the shopkeepers having turnover between Rs 5 lakh to Rs 10 lakh would have to pay Rs 1000 as lumpsum tax instead of existing Rs 5000. The shopkeepers having turnover less than Rs 5 lakh have been given the option of getting a Nil Tax liability certificate at the payment of token fee of Rs 50. In the same manner it has been decided that there would be no hike in rates of lumpsum tax for a period of three years upto March 31, 2018 and thereafter, there would be an annual increase of 5% in it.
In another path breaking initiative, the Cabinet also gave nod for introducing a compounding scheme for Iron and Steel Re-rolling mills the state. The scheme stipulates that the tax liability of these industries would be linked with the units of electricity consumed for production of finished goods. The units opting for this scheme would discharge its output Tax liability by paying 50 paisa per unit of the electricity consumed and by way of 2 % advance tax on the import of scrap directly or through the traders. With a view to bring all the unauthorized constructions outside Municipal limits in the state under the umbrella of planning framework for ensuring parking, public health and securities facilities in these buildings, the Cabinet also gave nod to a compounding policy under which the owners of the authorized buildings could apply to the Housing and Urban Development department for regularization of their buildings. This would help the owners to avail the facility of water supply, sewerage and power connections.
In another significant decision, the Cabinet also gave approval to exempt Iron and Steel, Yarn, Sarson (Mustard), Cotton, Vegetable Oils and Paper board from e-trip. Likewise, the Cabinet also decided to increase the rate of VAT in Iron and Steel from existing 2.50% + 10 % surcharge to 3.50% +10% surcharge besides enhancing Advance Tax on Cenvat paid scrap (Iron and Steel) from currently 2.50% to 3.50%. Keeping in view the demand of the Iron and Steel Industry, the stages of Input Tax credit has also been increased from presently two to three stages. In a bid to prevent the loss to state exchequer, the Cabinet also gave nod to include Polyvinyl Chloride, Linear low density polyethylene (LLDPE), Low Density polyethylene (LDPE), High Density polyethylene (HDPE) and polymers of propylene mentioned in schedule B of Punjab VAT Act, which were similar to Plastic granules, plastic powder and master batches, in schedule E of the Punjab VAT Act. The rate of VAT on these items would now be charged at 8.5% +10% surcharge, which would enhance the revenue of state by Rs 20 crore annually.
The Cabinet also gave approval to amend Punjab Shops and Commercial Establishments Act, 1958 which stipulates that women workers would be allowed to work during night shifts in establishments covered under “Shops and commercial establishments Act”, subject to certain conditions to ensure their safety. In a bid to prevent exploitation of teachers in Private educational institutions, the Cabinet also gave approval for amending section 2 (i) of the Minimum Wages Act vide which teachers and any category could be covered within the definition of employee under section 2 (i) of the Minimum Wages Act thereby allowing the government to fix minimum wages for them.
The Cabinet also gave green signal for amending the Fiscal Incentives for Industrial Promotion (FIIP) 2013 thereby stipulating that a sum equal to 0.25% of the verified Fixed Capital Investment (FCI) would be contributed in equal proportion i.e. 0.125% each, to the Punjab State Cancer and Drug Addiction Treatment Infrastructure Fund and Punjab Ancient Historical Monuments, Archaeological Sites and Cultural Heritage Maintenance Board Fund. Likewise, the clause 7.4.2 and 7.4.3 in the Chapter 7 of FIIP has been deleted and clause 5.1.6 (a) IN Chapter 5 of the FFIP-2013 has been amended. In the same manner the Chief Minister has been authorized to amend the necessary clauses in FIIP 2013 as required in future. Even those projects which do not avail loan from any financial institutions would also be eligible to take benefit of investment policy.
In another major decision, the Cabinet also decided to enhance the rate of VAT on Natural gas in the state from existing 5.5% + 10% surcharge to 13% + 10% surcharge. This would help the state in mopping up additional revenue of state by Rs 45 crore than the previous year. The Cabinet also decided to re-designate Anandpur Sahib town as ‘Sri Anandpur Sahib’ in view of religious sentiments of the people besides the rich legacy of this historic and holy city where the tenth master of Sikhs Sri Guru Gobind Singh Ji founded the ‘Khalsa Panth’ in 1699.At the very onset, the Cabinet observed two minutes silence to mourn the sad demise of former Punjab Cabinet Minister Mr. Jasjit Singh Randhawa, who passed away recently after a brief illness and expressed heartfelt sympathies with the bereaved family in this hour of crisis.