States may get to fix cap on professional tax

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In a move aimed at strengthening states, the Centre is looking to give up its powers to decide the ceiling
on professional tax levied by municipal bodies and states such as Maharashtra, Gujarat, Tamil Nadu
and Karnataka, reports Sidhartha.

Under the Constitution, states and civic bodies are empowered to levy the tax but the ceiling — currently
Rs 2,500 annually — is fixed by the Centre.

If the move goes through, states will have flexibility in
fixing professional tax they levy but will end up augmenting the re source flow of these bodies, most of
which are severely cashstrapped.

Source: Times of India http://www.pressreader.com/india/the-times-of-india-new-delhi-edition/20160713/281479275750224/

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