CM tables Govt Resolution seeking Income Tax exemption for left-out communities

GANGTOK, 27 March: Communities residing in Sikkim, left-out from the Income Tax exemption accorded to the Sikkim Subjects, received a reiteration of the State Government’s commitment to lobby for similar exemption for them yesterday, with the Chief Minister bringing in Resolution No.2 of 2011 “Seeking exemption from payment of Income Tax under the Income Tax Act, 1961 for the left out categories of persons”. This Resolution, proposed by the Chief Minister, was passed unanimously by the Sikkim Legislative Assembly with MLAs Dorjee Namgyal [Gangtok], Madan Cintury [Zoom- Salghari], Sonam Gyatso Bhutia [Ralang-Barfung], and Binod Rai [Namchi-Singhithang] participating in the discussions.
This, it may be recalled is the second time that the present Legislative Assembly is passing such a Resolution, but as the Chief Minister explained, the last Resolution, brought and passed on 11 December 2009, was a Private Member’s Resolution, while this time, it was a Government Resolution, carrying that much more weight and significance.

All the members who participated in the discussion yesterday, ‘whole-heartedly’ welcomed the resolution, which, as per them was “justified as it was their long pending right”.
As news spread of the tabling and passage of the resolution, senior members of the business community gathered at the Legislative Assembly and greeted the CM with khadas as he exited from the hall, thanking him for the latest gesture.
The resolution defines the left-out category as including all persons who have/ had agricultural land in rural areas and have been ordinarily residing in the State of Sikkim prior to the enactment of Sikkim Subjects Regulation, 1961; all the old settlers, i.e., the business community who have been residing continuously and had permanently settled in Sikkim prior to the enactment of Sikkim Subject Regulation, 1961; and finally, all those persons whose father/ husband has/ had been in Sikkim Government service before 31 December 1969 and who have been permanently settled and are continuously residing in the State of Sikkim.
The Chief Minister read out the resolution which explains that the process by which Direct Tax Laws were extended to Sikkim in 1988 and enforced in 1989. The extension and enforcement of direct tax laws, more particularly, the Income Tax Act, 1961 was objected by the people of Sikkim as being against the spirit of the Constitution, more particularly, Article 371F.
Further, and more ‘unfortunately’, the then government headed by NB Bhandari agreed to the enforcement of direct tax laws with effect from 01 April, 1995, and that this proposal was not agreed to by the then Finance Minister, the Resolution details.
The Chief Minister, through the resolution, also highlights how the Sikkim Democratic Front, which came to power in 1994, took up the Income Tax issue and was finally successful in resolving the ‘vexed, sensitive and emotive’ issue of extension and enforcement of direct tax laws when the Finance Act was amended in 2008 which provided income tax exemption to Sikkim Subject certificate holders.
“However, with the extension and enforcement of the direct tax laws in Sikkim, certain categories of persons have been left out and the necessity to also consider their inclusion for Income Tax exemption has now surfaced which needs to be addressed”, the Chief Minister said.
The Chief Minister, while replying to the discussions, stated, “My biggest fear is that the facilities and the benefits provided through this resolution can be misused and taken advantage of. However, keeping aside this fear, I cannot deprive the deserving their rights and privileges”.
While urging the ‘left-out category’ not to indulge in such ‘practices’ [misuse] and stressing that the facilities provided be ‘upheld’ as per the law, the Chief Minister added that Pink and Green Cards will also be issued as per the entitlement of Sikkim residents so that their status was made more ‘transparent’.
“Green Cards and Residential Certificates will also safeguard the rights and privileges of the people who do not qualify, since even their demand is justified. Our stand is clear that we will stick to our demand for IT exemption for our left-out category of persons at the highest level as their security is our duty,” concluded the Chief Minister.