THE OLD SETTLERS OF SIKKIM

SPCC welcomes exemption for left-out sections and wants post-1970 ‘influx population’ taxed

MUCH WIDER RESOLUTION SHOULD HAVE BEEN BROUGHT IN: CONGRESS

GANGTOK, 27 March: The Sikkim Pradesh Congress Committee has demanded that the State government “involve and the take consent” of national and regional political parties in Sikkim before deciding matters having direct bearing on the Sikkimese people.
The reference here is to the resolution passed in the State Legislative Assembly which, apart from defining “left-out” communities, also seeks exemption for the left-out communities from payment of Direct Income Tax under Income Tax Law, 1961.

An SPCC press release, issued by its spokesperson, Kunga Nima Lepcha yesterday, states that the latest resolution would not have been necessary if the SDF government had not “hurriedly repealed” the Sikkim Income Tax Manual, 1948, which the SPCC claimed, paved the way for the enforcement of the Direct Income Tax Law in Sikkim.
The Congress has further commented that instead of tabling and passing such resolution in a “restricted and miserly manner”, the State Assembly could have adopted a much “wider resolution” to encompass the interests of more stakeholders.
While the SPCC welcomes exemption for the left out category, “who have become an integral part of Sikkimese population”, the State government, it states, cannot also ignore the fiscal improvement of the state’s economy through levying Direct Income Tax on the influx population.
The SPCC has also forwarded two points to the state government to “reconsider” its stand.
The SPCC has advised that the State Government fix 26 April, 1970 as the cutoff year for the purpose of application or enforcement of Direct Income Tax Law, 1961.
In this regard, the release points out that Goa was merged in the Union of India in 1965 but cutoff year was fixed as 1960 and there is precedence for adopting the same yardstick in case of Sikkim as well.
It next suggests that the Sikkim Income Tax Manual, 1948 “protected under Article 371F (k) till it was repealed by the Sikkim Legislative Assembly” should be revoked “as this law provided relief to all four communities of Sikkim including the old business community”.
“Such revocation of the Sikkim Income Tax Manual, 1948 should also provide relief to not only Lepcha, Bhutia, Nepali and the old business community but also the regular government employees. Rest of the population who came to Sikkim after 26 April, 1970 should be levied Income Tax under the Direct Income Law, 1961,” it argues.

source:sikkimnow