Remove upper limit on professional tax levy: state FMs
The Empowered Committee of State Finance Ministers here today demanded that the upper limit on levying the professional tax be removed.
"The panel after deliberating on the issue of professional tax came to the conclusion that the upper limit of Rs 2,500 imposed by the Constitution in 1988 should be waived [removed] forever," committee Chairman Sushil Kumar Modi told reporters.
Modi, who is also Bihar's Deputy Chief Minister, said the panel is of the view that by removing the upper limit states will get more tax under this head. After 1988, income of the professionals too have increased a lot, the committee noted.
"Consensus has been evolved on the issue among the panel members and it will urge the Centre to suitably amend the Constitution in this regard," Modi added.
The committee also urged the Centre to reduce the number of centrally-sponsored schemes and instead provide funds directly to states with a guideline to frame policies for the welfare of the people, Modi said.
Similarly, it was of the view that funds under health and education schemes should be send directly to states so that it can be included in the consolidated fund of the state.
Referring to the impact of Sixth Pay Commission on states, he said the ministers urged the Centre to compensate states in this regard so that they can pay arrears to employees.
The panel also suggested on giving powers to the state to add VAT on imports, he added.