Karnataka bandh: Businesses bear the brunt; Rs 400 crore reportedly lost in tax revenue
Ramesh Chandra Lahoti, President of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), revealed that the state incurred a tax loss of Rs 400 crore on Friday alone.
- Sep 30, 2023,
- Updated Sep 30, 2023 4:32 PM IST
The Karnataka bandh, triggered by the Cauvery water dispute, has reportedly resulted in a significant tax revenue loss of Rs 400 crore for both the state and Central government in a single day. Multiple pro-Kannada groups staged the bandh to demand the withholding of Cauvery water from Tamil Nadu by the state.
Bengaluru witnessed three separate bandhs within a 20-day period, leading to the closure of shops and businesses. The private transport association initiated a bandh on September 11, effectively paralysing Bengaluru.
The second bandh was initiated by certain pro-farmer groups, urging the cessation of water release to Tamil Nadu. Subsequently, pro-Kannada groups also enforced a bandh on Friday, disrupting normal life over the same issue.
Ramesh Chandra Lahoti, President of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), revealed that the state incurred a tax loss of Rs 400 crore on Friday alone.
He stated, "Approximately 80% of traders and businesses supported the bandh organized by various groups. Karnataka's tax revenue suffered a loss of Rs 400 crore. We urge the state government to engage in a dialogue to resolve the water dispute, which may lead to a solution."
Industry experts indicated that the September 26 bandh in Bengaluru caused losses of at least Rs 250 crore across various sectors. Considering the bandh on Friday, it is estimated that more than 10,000 hotels throughout Karnataka collectively suffered losses ranging from Rs 150-160 crore, with an estimated loss of up to Rs 60 crore in Bengaluru alone. The excise industry reportedly faced a loss of Rs 180-200 crore due to the bandhs observed on Tuesday and Friday.
Also Read Karnataka govt levying 'election tax' to fund Telangana Congress for polls, says BRS leader KTR
The Karnataka bandh, triggered by the Cauvery water dispute, has reportedly resulted in a significant tax revenue loss of Rs 400 crore for both the state and Central government in a single day. Multiple pro-Kannada groups staged the bandh to demand the withholding of Cauvery water from Tamil Nadu by the state.
Bengaluru witnessed three separate bandhs within a 20-day period, leading to the closure of shops and businesses. The private transport association initiated a bandh on September 11, effectively paralysing Bengaluru.
The second bandh was initiated by certain pro-farmer groups, urging the cessation of water release to Tamil Nadu. Subsequently, pro-Kannada groups also enforced a bandh on Friday, disrupting normal life over the same issue.
Ramesh Chandra Lahoti, President of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), revealed that the state incurred a tax loss of Rs 400 crore on Friday alone.
He stated, "Approximately 80% of traders and businesses supported the bandh organized by various groups. Karnataka's tax revenue suffered a loss of Rs 400 crore. We urge the state government to engage in a dialogue to resolve the water dispute, which may lead to a solution."
Industry experts indicated that the September 26 bandh in Bengaluru caused losses of at least Rs 250 crore across various sectors. Considering the bandh on Friday, it is estimated that more than 10,000 hotels throughout Karnataka collectively suffered losses ranging from Rs 150-160 crore, with an estimated loss of up to Rs 60 crore in Bengaluru alone. The excise industry reportedly faced a loss of Rs 180-200 crore due to the bandhs observed on Tuesday and Friday.
Also Read Karnataka govt levying 'election tax' to fund Telangana Congress for polls, says BRS leader KTR