Chandigarh: The Punjab Cabinet gave a green signal for the draft model GST Bill to be put before the assembly in the budget session. Meanwhile, the cabinet also given approval to the report of the Fifth State Finance Commission submitted to the Punjab Governor.

Chandigarh: The Punjab Cabinet gave a green signal for the draft model GST Bill to be put before the assembly in the budget session. Meanwhile, the cabinet also given approval to the report of the Fifth State Finance Commission submitted to the Punjab Governor.

These key decisions were taken at a meeting of the Council of Ministers, chaired by Chief Minister Captain Amarinder Singh.

The cabinet also decided to bring the draft bill on the appointment of Administrators to the Market Committees and the amendment to the Punjab Agricultural Produce Markets Act, 1961 in the budget session of the Vidhan Sabha, according to an official spokesperson.

The enactment of State Goods and Services Tax (SGST) Bill, duly approved by GST Council and vetted by Legislative Department of the Union Ministry of Law, will pave the way for the repeal of the Punjab Municipal Fund Act, 2006 and Punjab Municipal Infrastructure Development Act, 2011. It will boost the state exchequer by enabling 100% VAT and additional tax thus collected on petroleum products and liquor to be deposited in the treasury.

The Fifth State Finance Commission, which the cabinet has approved, recommends the continuation of existing devolution of 4% share of net proceeds of State Taxes to Local Bodies for the year 2016-17 to 2020-21. This will result in transfer of Rs. 4364.40 crore (Estimated) to both Rural and Urban Local Bodies, with the State Government accepting the Commission’s recommendations regarding share of Urban Local Bodies and Inter-se distribution among PRIs.