THE OLD SETTLERS OF SIKKIM

Sikkim MPs meet Finance Minister seeking IT exemption for old settlers

NEW DELHI, 21 March: Sikkim MPs, Hishey Lachungpa and PD Rai, today called on Union Finance Minister Pranab Mukherjee at his office in the Parliament House after the day’s morning session of the ongoing budget session.
During the half an hour meeting, the two Parliamentarians placed a fresh memorandum requesting the exemption of Central Service Tax from retrospective date in Sikkim as well as Income Tax exemption for the old settlers.
During the discussion, the MPs also informed the FM of the several memorandums submitted by Chief Minister Pawan Chamling to the Prime Minister on these issues which are still pending with the Union Government and requested for an early resolution of the imbroglio.
The MPs also endorsed the memorandum submitted by the Joint Action Committee of All Sikkim Tourism Stakeholders before the Union Finance Minister demanding that the Central Service Tax be applicable in Sikkim from a Prospective Date, preferably from 01 April, 2012, rather than the retrospective date proposed.
The Union Finance minister was informed that summons were being issued repeatedly for collection of Central Service Tax with retrospective effect from 2006.
The MPs also cited several reasons as to why Service Tax should be implemented from a prospective date. Some of the reasons were lack of proper knowledge on Service Tax among the people of the state and the major slump on the tourism sector in Sikkim due to the devastating earthquake of September 18, 2011.
The issue of exemption of Income Tax for old settlers was also discussed with the FM. They informed that there were some 400 old settlers who have been living in Sikkim since prior to the promulgation of Sikkim Subject Regulation in 1961, and that the demand, which the Union Finance Minister was fully aware, was still awaiting a decision from the Central government.
Mr. Mukherjee was positive to the demands reiterated by the MPs and assured the two Parliamentarians that he would look into the matter and come up with some solution. [from PEMA L SHANGDERPA]