Since March 2020, small businesses in Goa have been struggling due to the lockdown and have been demanding some kind of compensation from the government but their pleas have been ignored
On the other hand, the government has violated all rules and opened up its treasury for the casino operators.
The State government has waived off total revenue of Rs 277.08 crore, which was owed to the State; and moreover, also allowed them to pay the Annual Recurrence Fee (ARF) on a monthly basis.
This occurred even though the there were key voices within the government advising the State against taking such a decision.
The Home department had clearly warned that any move to grant the waiver, can result in a revenue loss of Rs 277.08 crore.
“If this request is considered in isolation, then the financial implications of the waiver would be Rs 175 crores (50 percentage of the ARF due). If this request is considered in addition to that listed at para 10 (a), then the combined financial implications for the waiver would be Rs 277.08 crores,” it said.
This would mean that that the resultant revenue from ARF for this financial year would thus only be Rs.72.92 crores, as against Rs 350 crores.
Meanwhile, The Confederation of Indian Industry (CII), Goa Chamber of Commerce and Industry (GCCI), Goa State Industries Association (GSIA) and Travel & Tourism Association of Goa (TTAG) Verna Industries Association (VIA) have made a joint representation to the Chief Minister strongly opposing the waiver of Rs. 277.08 crores to Casino Industry.
The representation signed by each of the heads of the above organisations, reads as follows:
It is very disheartening that the Government is contemplating to waive off huge sum of 277.08 crores to Casino Industry and allowed it to pay the Annual Recurrence Fee on a monthly basis in spite of the fact that the State government claiming to face financial crisis.
While industries, small traders, restaurants, retail wine shops, transport operators and other small businesses have been have been struggling to survive during the lockdowns due to Covid19 since March 2020, several requests to the Goa government for waiver of fees during the lockdown period have been ignored with the reason that the State is facing financial crunch. However, State Government has now come out with a decision to waive crores of rupees to the Casino Industry, which is truly unacceptable.
While MSMEs and other small businesses are struggling against all odds without the support of Goa Government, to achieve the Prime Minister’s clarion call for an Atma Nirbhar Bharat, the MSMEs and other industry being the major drivers of the economy are being given the last priority while consideration is being given by the Goa Government to Casinos.
Most of the requests made by the industries in Goa were rejected on grounds that the State has been facing financial crisis and unable to forgo revenue loss, to cite a few request made are:-
• Payment of Pending Dues to MSMEs by the Government departments
• Some financial help for payment of wages during the lockdown period
• To charge power bills on the basis of units consumed and not on sanctioned load
• To waive lease rent/renewal fees payable to Government Departments/Undertakings
• Deferred Payments – the electricity charges payable should be allowed to be deferred till first Apr 2021 without any late charges, interest fees or disconnection notice. This will provide businesses with working capital to operate till March, 2021.
• Since garbage was not collected for six months and fees have already been paid, this must be adjusted against Fees for the next Financial year
• All businesses with Tourism licenses should get a 50% reduction in fees in municipality, corporation & panchayat license fees for the period of operation.
• Organizations that have already paid full license fee should be given credit for the next financial year for the same.
• Panjim CCP has granted relief to pay parking contractor for the lockdown period in the form of a refund – all other businesses in corporations / municipalities / panchayats should be granted similar relief.
• 2% Stamp Duty – Stamp duty charges should be reduced to 2% for people who want to liquidate their assets for remaining afloat for the period up to 30th Sep 2021
• Government should come out with interest subvention to all stakeholders of tourism industry as discussed and proposal shared of Kerala government on similar lines. Please note Tourism promotional budget could be utilized for giving this help.
• Excise fees should not be payable for the period of six months during which bars were ordered to be compulsorily to be closed (April to September) and license fees should for the said period should be considered as license fees for the months of Oct 2020 to 31 March 2021 for Hotels, Restaurants, Bars, etc. and those who have already paid, the fees must be adjusted in the next financial year.
• No late penalty fees for units paying now & no interest on late fees.
• Postpone the increase in the tourism license fees for 2 years that is up to 2023-24.
• Reduction of Visa Fees – 50% refund to be given on all visas between 1st October, 2020 to 1st October, 2021 through the tourism promotion & marketing budget
• Exorbitant house tax and establishment taxes by Corporation of City of Panjim (CCP).
On the contrary, the Government is sending notices and pressurizing small businesses to pay State tax dues during this critical period of economic slowdown. Amendments are brought by way of Industrial Disputes (Goa Amendment) Act, 2020 raising the retrenchment compensation to 45 days of earlier 15 days.
Goa Factories Rules proposing to raise the licence fees to make it difficult for the industries to survive. If the existing industries are not taken care of and forced to the brink of closure, then why should new industries come to Goa or expand their projects. The INDUSTRY totally opposes the Government’s move to give waivers to selected cash rich sectors. If Government is planning to give waiver of fees during the lockdown period, the same rules must be made applicable across the board to all the sectors. INDUSTRY is confident that the Government will accept the request made by the Industry and apply the waiver to every sector which have been trying to sustain themselves through these pandemic times.
