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No new tax, housing to get major boost: Goa CM

Goa Chief Minister Manohar Parrikar has hinted that the government in its maiden budget-- 2000-2001-- would not be imposing fresh taxes. Instead innovative measures for resource mobilisation and schemes to give a massive boost to housing are in the offing.

''We may even go for reduction in taxation. I do not believe in an economy in which the state earns more revenue just by imposing more and more taxes on the people'', he said in Panaji on Thursday.

Replying to a question whether there was any scope left for his government to impose fresh taxes to mop up resources, particularly after the centre's decision to impose two per cent additional surcharge on income and corporate taxes and the move to have a fresh dose of moderate taxes for re-building earthquake hit Gujarat, he said the state government has identified certain areas from where revenue could be generated.

He added that this would not affect the common people and it could form part of the innovative schemes for resource mobilisation to be included in the state budget.

Citing the example of gun licence, Parrikar said that there were many areas, which had not been touched so far for resource mobilisation.

Parrikar said that there were 18,000 gun licences in the state. While the government was getting only Rs ten per licence as fee, the average expenditure incurred on processing each application is about Rs 400 to Rs 500.

''Though the amount involved may be small, we have to rationalise in such areas'', he added.

He said even if a processing fee of Rs 500 was charged Rs 5 million could be mobilised from 10,000 such applications.

''A person who can purchase a gun worth Rs 100,000, can also pay Rs 500 towards processing fee'', he argued adding that a circular was being issued to charge processing fee on all such applications.

He said that the state budget was planning major thrust in housing. A boost in housing activities would help provide employment and shelter besides stimulating economic activities in the state, he said.

When asked what steps he would like the union finance minister to take in his budget for this sector, Parrikar said that while the centre has given some benefit in terms of income tax concession for tax paying citizens, there was hardly anything for the poor.

He, however, clarified that he was against the concept of providing free housing to anyone.

''Instead of spending on schemes like Indira Awas Yojana, we require schemes under which a person is encouraged to construct house on his own and concessions on interest, could be given'', he added.

Stating that he favoured a radical step of drastically reducing interest rates in the housing sector, Parrikar quipped, ''we will not lose anything by reducing interest rates. In fact, lowering interest rates can generate more revenue, as it would generate economic activity, which will ultimately fetch tax revenue.''

''Wait for our budget, we are working on certain schemes for housing sector in the state'', he added.

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