Garbage Tax

     Direct Taxes one of the biggest source of revenue of any government, and to expand their kitty government keep on looking new ways, whether it can be justify or not, it is another issue. Often Government of India or State Governments sometimes impose tax or cess on existing taxes, despite protests and uproar from all sector of society which never listen or focus by Government, instead Central Government or State Governments keep on ignoring it. Recently tax or cess against whom everybody was vocal but government ignored it and implements, are -

• Recently Government of India deregulate price control mechanism on to petrol and soon going to add diesel in the list, and result of it prices of all the petroleum products like petrol, diesel, LPG and kerosene increase, and as per news on monthly basis petroleum companies will asses the price of petrol and it is bound to rise or fall as per international price of petrol, but if diesel will also join petrol then it can create chaotic scene in the country because goods in the country moves from one place to another on trucks and any price rise they will pass on the buck to the customers by increasing the freight prices, ultimately it’s the consumers who have to bare the price increase.
• In Punjab State industrialists are vocal against octroi and electricity cess as both are increasing their input cost, thus they are unable to face the competition generate by other states producers.
• Petroleum products dealer association trying to convince state government that high VAT are eating not only sale of border area petrol pumps but also government is losing revenue because of slab of 33.5 percent VAT, and if this slab will continue then in coming time it can even dry the border area petrol pumps because of more price of products from adjoining states petrol pumps.
• Now if one believes on to the speculation then Punjab Government is in process to impose Garbage Tax on the residents of state. Punjab Government’s local body department has issue order to Municipal Corporations and Municipal Committees to send them back after getting clearance from general houses’ of cities and town to implement door to door garbage tax, so that its contract could be hand over to any company. As per information Government has made mind to authorise any company to lift the garbage from people’s houses’ across state after global tender. When Government will receive from all the municipal committees and municipal corporations which have to get clearance from general houses then government will award contract to a company, and contractor have to recruit workers across state to lift the garbage from people houses’ and in return he is entitle to collect money 30 rupees per month from the houses which are up to 150 yard and with same area if it is commercial then he will collect 50 rupees.

It is a new concept in India, but with implementation of this door to door Garbage tax and residents of state has to pay nominal thirty rupees fees it will reduce government lot of burden as already working for committee government has to bear their expenses like salary, increments, bonus etc. etc but giving contract to any company burden will shift to company and plus government will generate revenue in lieu of contract.