The third day of the Seventh Session of the Tenth Assembly of the Sikkim Legislative Assembly commences

Gangtok, May 19 (IPR): The third day of the Seventh Session of the Tenth Assembly (Budget Session 2023-24) of the Sikkim Legislative Assembly commenced with the Question Hour.

In reply to the query raised by MLA Shri D.R. Thapa about mobilizing additional revenue generation, Chief Minister Shri Prem Singh Tamang, also the leader of the House, said that the State’s Revenue has remained a top priority since the government came into power in 2019. He expressed that the State government fully endorses the very fact that the Revenue Receipts form the very base of the Government Budget, and therefore the Government is fully committed and focused on the task of augmenting and enhancing the revenue receipts of the State.

The details of revenue collection were mentioned as follows:

• The actual Revenue collection figure in Financial Year 2019-20 was Rs. 1663.80 crores as against Rs. 1555.76 crores collected during 2018-19. Thus, there was a Revenue growth of 7% in 2019-20 over the 2018-19 revenue figures.

• The State Government managed to collect Rs. 1628.99 crores as Revenue which is again a 5% growth over the 2018-19 revenue collection figures despite the severe impact of Covid- 19 pandemic in the Financial Year 2021- 21.

• The actual revenue collection figure was Rs. 1935.04 crores, with a healthy revenue growth of 19% over the Financial year 2020-21 revenue figures. This Revenue collection figures for 2021-22 is a considerable increase over the Financial Year Revenue 2018- 2019 figures by 25%.

• In The last Financial Year 2022-23, the Pre-actual Revenue collection figure was Rs 2441.09 crores showing an upward positive revenue growth of 26% over 2021- 22 revenue figures. This Revenue collection figures in 2022-23 is a substantial increase over the Financial Year 2018-19 revenue figures by over 57%.

Evidently, the State’s Own Tax and Non-Tax Revenue has been increasing every Financial Year due to the focus and commitment shown by the State government despite the COVID-19 pandemic and subsequent lockdowns in Financial Year 2020-21.

To mobilize additional revenue generation and to plug any revenue leakages, the State Government has initiated various proactive measures such as:

1. Eco System Service Cess has been introduced to various pharmaceutical companies and Hydro Power Projects operating in the State and the Revenue collection during the last financial year was Rs. 154.71 crores as additional revenue generation under Forest Department.

The Department has also deployed mobile units to check vehicles carrying vehicles along strategic roads to curb revenue leakages.

Upgradation and strengthening of Forest Check Posts in strategic locations like Melli and Naya Bazar have been done, resulting in the enhancement of revenue collection.

Online gate ticketing systems have been introduced for entry into Himalayan Zoological Park and other parks and gardens under the same Department for eliminating any possible revenue leakage and for the convenience of the general public.

2. The State Government has initiated the installation of Prepaid Energy Meters under the Power Department for eliminating any possible Revenue leakages by way of under assessment of energy consumption by meter readers. It has also undertaken frequent energy meter checking drives by the department’s mobile Revenue Squad to curb any power energy theft through various malpractices.

3. Under Excise Department, E-Abkari project has been launched for facilitating online application/ online renewal of Excise licenses, online registration of labels and online permits, which resulted in the enhancement of revenue generation in the Department and also the online project has provided convenience to the general public.

4. The State Government has taken steps to enhance the revenue-earning capacity of the Commercial Tax Division under the Finance Department by providing state-of-art, fully equipped Mobility Vehicles. The Mobility Office Van will have installed facilities of internet connectivity, workstations & restrooms which will provide mobility to the commercial tax division team assigned to conduct checking of the consignment of goods taxable under GST to curtail any tax evasion.

The State government further aims at diminishing tax evasion by encouraging voluntary compliance among taxpayers. An enforcement center will be developed in the current financial year Bardang to detain and physically check any suspicious consignment of goods.

The center will be digitally connected to Rangpo check post. The data of every consignment entering through Rangpo checkpost will be examined till the time the truck reaches Bardang so that only suspicious consignments will be detained and checked.

5. For augmenting the revenue receipts, Transport Department has accomplished the task of enlisting private buses under SNT supervision which has led to the generation of additional revenue for the state. The department has also undertaken the initiative of bringing all the heavy construction and road machineries under SNT supervision along with container vehicles operating in the state, which shall enhance the revenue receipts of the state. Supervision charges have also been collected online at the Rangpo and Melli Check posts to curb any revenue leakages.

6. To enhance the revenue receipts under PHE Department, the water tax for the consumption of water by all commercial establishments across the state shall be charged based on a volumetric system instead of the old system, which is based on the number of taps installed in the building significantly increasing the revenue collection of the state.

Augmentation of revenue receipts through additional resource mobilization, strengthening and upgrading the existing systems in place, and curbing and eliminating any possible revenue leakages is a continuous ongoing process. With this, the Chief Minister assured the House that the State government shall continue to work towards this goal.

Replying to the supplementary question raised by MLA Shri Pawan Kumar Chamling over steps being undertaken by the State government to raise non-tax revenues, the Chief Minister informed the House that the State government is providing an increasing emphasis on sectors, namely Power, Forest, SNT, Police, Transport, Sanitation, and Water Supply to augment non-tax revenues in the State.

Regarding the queries laid by MLA Shri Pawan Kumar Chamling about the progress report of the Inner Line Permit (ILP) Committee, the Chief Minister informed that the ILP Committee, headed by retired Secretary, Government of Sikkim, Shri Shanta Pradhan, has undertaken several visits to the NE States to study the impact of the implementation of ILP in the respective States. He added that the Committee has completed the consultation exercises after taking into account the opinions of all stakeholders and that the Committee report is in the final stage of completion.

The Chief Minister apprised that once the ILP Committee submits the report, the State Government shall examine the report and initiate appropriate action thereafter.

In reply to the concern raised by MLA Shri Pawan Kumar Chamling over the implications of the Citizenship Amendment Act 2019 in Sikkim, the Chief Minister, also the leader of the House, informed that the central leaders have already given assurance that Sikkim is protected by Article 371F. Moreover, for the CAA to be implemented in Sikkim, the Sikkim Legislative Assembly has to pass with consensus, he added.

The Chief Minister said that the need for a strong ILP system in Sikkim has been a long pending demand of the State and further assured that the State government will always protect and conserve Sikkim’s special Constitutional provisions under Article 371F.

In reply to questions raised by MLA Shri D.R. Thapa regarding the steps taken by the Government to safeguard the expansion of Sikkimese definition and Clause IV and V of the Finance Act, 2023, Minister-in-Charge for Law and Parliamentary Affairs Department, Shri Kunga Nima Lepcha, informed that the Government of Sikkim is duty bound to protect and safeguard Sikkim and the interest of Sikkimese people.

“This is evident from the numerous efforts, made by the Government to leave no stone unturned to protect the rights and interests of our people,” the Minister stated.

The Minister further informed that immediately after the Finance Bill 2023 was passed, the Chief Minister met the Union Finance Minister, Smt. Nirmala Sitharaman, at New Delhi on 4th April 2023, and submitted a letter, with a request not to dilute the distinct identity of ‘Sikkimese’ as defined by Tripartite Agreement of 8th May 1973 and uphold the spirit of Article 371F of the Constitution of India.

It was also apprised that the State Assembly of Sikkim would pass a Resolution clearly indicating the term ‘Sikkimese’ shall mean only the three ethnic communities of the State, i.e., Sikkimese of Lepcha origin, Sikkimese of Bhutia origin and Sikkimese of Nepali origin.

It was also requested to delete clause (iv) and clause (v) from the Finance Act of 2023 and indicate that the Income Tax exemption provided to other individuals under section 10 of 26AAA of the Income Tax Act would be considered a concession, provided by the Central Government only for the purpose of Central Income Tax and no other benefit shall accrue to them to uphold the spirit of Article 371F of the Constitution of India.

The same day, the Ministry of Finance, Government of India, clarified that the term ‘Sikkimese,’ defined for the purpose of the said clause, is only for the purpose of the Income Tax Act, 1961, and not for any other purpose.

Accordingly, on 10th April 2023, Resolution No. 02 of 2023 regarding clarification of clause (iv) and clause (v) of section 10 (26AAA) of the Income Tax Act, 1961 as inserted by the Finance Act, 2023 was passed by the Sikkim Legislative Assembly to clearly establish beyond any doubt that the term “Sikkimese” shall mean the three ethnic communities of the State, i.e., Lepcha of Sikkimese origin, Bhutia of Sikkimese origin and Nepalis of Sikkimese origin only.

The Resolution was accordingly passed and adopted to request the Government of India to extend all possible help and support to protect the distinct identity of the Sikkimese people in terms of the 8th May 1973 Agreement and Article 371 F of the Constitution and to ensure that the distinct identity and protection guaranteed to the Sikkimese people are not diluted and the sentiments of the people of Sikkim is not hurt.

It was also adopted that the Government of Sikkim would request the Government of India to make necessary amendments in the Income Tax Act for putting individuals or persons as mentioned in clauses (iv) and (v) of sub-section 26AAA of section 10 of the Income Tax Act, 1961 in “Others category” in the above said Act, for the purpose of income tax exemption only, thereby segregating the individuals and persons mentioned in clauses (iv) and (v) above from three ethnic communities of Sikkim and issue necessary clarification in the form of a notification to this effect and maintain the exclusivity of the term ‘Sikkimese.’

Further, the resolution so passed has been forwarded to the Ministry of Finance for taking necessary action by the Government of India, the Minister added.

In reply to the supplementary question raised by MLAs Shri D.R. Thapa and Shri Pawan Chamling, the Minister-in-Charge, Shri Kunga Nima Lepcha, informed that an All-Party Committee has been constituted to examine the provisions of Article 371F with Shri Kunga Nima Lepcha as the chairman of the Committee along with members Shri Sonam Lama, Shri B.S. Panth, Shri Pawan Kumar Chamling, Shri D.T. Lepcha and Shri D.R. Thapa.

Responding to the query raised by MLA Shri D.R. Thapa concerning the issue of the old pension scheme and the new pension scheme (CPF), the Chief Minister, also the leader of the House, informed that the State Government has constituted a committee to examine the issues relating to the restoration of the Old Pension System for employees who are covered under the New Pension System vide Notification No. 138/GEN/DOP dated 10/12/2022.

He stated that the committee is headed by Shri Rinzing Chewang Bhutia, Secretary Department of Personnel. The other members are Shri M.C.P. Pradhan, Controller of Accounts-cum-Secretary, Finance Department and Smt Punita Alley, Additional Director, PGIPF Division, Finance Department.

The committee is examining the process adopted by other State Governments which have reverted back to Old Pension System, he added.

In response to the supplementary question raised by MLAs Shri D.R. Thapa and Shri Pawan Chamling with regard to the progress status of the Committee, the Chief Minister, also the leader of the House, informed that the Committee is expected to complete the report by June 9, 2023.

Thereafter, the House was opened for the Legislative Business that witnessed deliberations and discussions over the consideration and passing of the three bills, namely Sikkim National Law University (Amendment) Bill, 2023 (Bill no. 07 of 2023), Sikkim Global Technical University Bill, 2023 (Bill No. 09 of 2023) and Sikkim Organic Agriculture University Bill, 2023 (Bill No. 10 of 2023), introduced by Minister, Education Department, Shri K.N. Lepcha, on 17th of May, 2023.

During the Legislative Bussiness, the Charge of Minister, Education Department, Shri K.N. Lepcha, introduced the Sikkim National Law University (Amendment) Bill, 2023 (Bill no. 07 of 2023) for consideration in the House.

In reply to the question raised by MLAs- Shri D.R. Thapa and Shri Pawan Chamling about the establishment of private universities in the State, the Education Minister, Shri K.N. Lepcha, apprised the House about the addition of Administrative components in the said University. He also added the advantages a university brings, which include employment of eligible local youths of Sikkim.

In reply to the question put forth by MLAs Shri Pawan Kumar Chamling and Shri D.R. Thapa with regard to the Sikkim Global Technical University Bill, 2023 (Bill No. 09 of 2023), passed by the House today, Minister-In Charge of Education Department Shri Kunga Nima Lepcha informed the house that the Universities are subject to fulfilling the credibility of enhanced norms and standards of affiliation. He added that setting up various colleges in the State will offer subjects of various disciplines, and employment opportunities will also be generated for Group ‘C’ and ‘D’ categories.

In reply to the questions raised by MLA Shri Pawan Chamling on organic farming in Sikkim being an intellectual property right of Sikkimese people, the Chief Minister, also the Leader of the House, supporting the bill, mentioned the importance of marketing the organic brand to the world. He explained the benefits of employment and easy access to poor students through the establishment of universities. He also cited an example of the benefits availed by the community of Zoom Salghari with the establishment of Capital University in the constituency.

The House passed all three bills after careful consideration.

This was followed by discussion and voting on Separate Demands for Grants under various Ministers-in Charge.

Discussing over the Separate Demands for Grants under the charge of the Minister for Rural Development, Cooperation, and Ecclesiastical Departments, Shri Sonam Lama, in response to questions raised by MLA Shri Pawan Kumar Chamling, mentioned that the Chief Minister Rural Housing Mission has witnessed an increase in the allocation of budget owing to the increase in the rate of raw materials over time.

In addition, he mentioned that the Department is working on providing water facilities in rural areas.

Further, he mentioned that the sanctity of the holy Gurudongmar Lake would be preserved.

While replying to the query raised by MLA Shri D.R. Thapa, the Minister-in-charge informed that the Government introduced party-less Panchayat elections to avoid hostility among the public. He also assured that the 73rd Amendment, under Article 234-G, makes it mandatory for the State government to devolve powers, responsibilities, and authority to the Panchayats.

The Demands were put to the vote and passed by the House.

During the discussion under the charge of Minister Roads and Bridges Department; and Culture Department, Shri Samdup Lepcha, while replying to the queries raised by MLA Shri Pawan Kumar Chamling on account of budget allocation increment for the construction of Government infrastructures, informed the House that a sharp spike in the prices of raw materials is likely to push up the cost of government-funded infrastructure projects. The budget allocated is giving impetus to the infrastructural development of the State, he added.

While replying to the query put forth by MLA Shri Pawan Kumar Chamling on the Budget Allocation for Fair Weather Roads, Chief Minister also the Leader of the House Shri Prem Singh Tamang, informed that the State Government has made all efforts to ensure that pending liabilities of the previous government like expenditure for fair weather roads have been catered. The administration has to undergo various procedures like attaining NOC, after which Tender Notice is issued. Compensation on the Fair Weather road is conditioned to the Notification issued earlier, which denies the right to compensation.

In reply to the query raised by MLA Shri Pintso Namgyal Lepcha on the status of the construction of Mantam bridge in Dzongu, Minister Roads and Bridges Department Shri Samdup Lepcha informed the house that the delay was due to Covid-19 pandemic and travel restrictions which also saw shortage of labourers. The Minister assured that the department is committed to completing the bridge by 2024.

Regarding the query raised by MLA Shri Y.T. Lepcha on the budget allocation for the road maintenance of Gangtok constituency, Minister Roads and Bridges Department Shri Samdup Lepcha informed that the road infrastructure will be developed at war footing.