Those people who are not natives of Sikkim but have settled there will not be exempted from taxes any longer, Finance Minister P. Chidambaram told the Lok Sabha Tuesday.
'Since the late 1980s, income tax was to be levied on Sikkim (but was opposed). After intensive discussions for the last 18 years by successive governments, it has been decided that only those in the Sikkim subject register will be exempt,' said Chidambaram.
This would mean that those who have settled in the state will not be exempt from tax in the manner that Sikkimese natives are let off. The natives figure in the 'Sikkim register', which will now form the basis for this differentiation.
Those falling under the tax ambit now will have to pay taxes with retrospective effect from April 1, 1990.