Sources
of revenue:
Adequate
finances which are independent of the State government,
constitute the life-blood of the whole system
of local self government.
According to Taxation Inquiry Commission, "Apart
from growth and development, the crux of the problem
of local bodies is finance."
Local Self Government- becomes meaningless in
the absence of financial autonomy. It enjoys the
power of imposition of local taxes. The municipal
bodies must have a wider scope of collection of
revenues. |
Municipal
bodies derive their revenues from various sources,
such as :
A. Taxation
Municipal
bodies are authorize to levy certain taxes(direct/indirect)
subject to confirmation by the Government.
B.
Non-Taxation
This
source includes items like rents(of municipal property),fees(for
issue of licenses,permits etc.), fines(realised for
offenses against municipal bye-laws, rules, regulations
etc.), interest (on investment), profit(from public
utility undertakings like water, passenger transport,
electricity supply).
The
Government has notified rates/maximum limits of Following
Taxes/Fees which are being imposed by the municipalities
in order to raise sources for income
:
|
Name
of the Taxes/Fees
|
Rates
|
| House
Tax |
7.5%
to 12% |
| Show
Tax |
Rs.50/-
per show |
| Dog
License Fee |
Rs.50/-
per annum |
| Building
Plan Fee |
Rs.2.50
paise for residential/ Govt. and Rs.5.00 for
commercial per sq.mtr. |
| Tax
on the consumption of Electricity |
1
paise per unit |
| Sale
of liquor |
Rs.1/-
per bottle |
| Cess
on the transfer of immovable property |
2%
of the amount |
In
addition to above, generally, the following taxes/fees
are being collected by the municipalities vide
resolutions in their respective houses:
|
Name
of the Taxes/Fees
|
Rates
|
|
License
for Dangerous and Offensive trades
|
Rates
are varied in respective ULBs
|
| Rehari
License Fee |
| Tehbazari
Tax |
| Slaughter
House Fee |
| Cattle
Pound Fees |
| Birth
& Death Certificate Fee |
| Copying
Fee |
| Tree
Cutting Fee |
| Library
Membership |
| Ground
Tax |
| Vehicle
License Fee |
| Death
& Birth Reg./ Late Fee |
| Forest
/Garden Income |
| Animal
Tax(Cattle Pound) |
| Trade
License Fee |
| Tax
on advertisement other than advertisement published
in the newspaper. |
C.
Grants-in-aid(Government Grants):
They
are the financial subsidies given by the State government
in aid of certain services rendered by municipalities.
These grants tend to be specific in nature, i.e., are
tied to some particular service.
D. Loans:
This
source is tapped to finance the capital expenditure
like installation of water works, acquisition of land
for residential purposes, development activities or
public utility undertakings. Loans can be raised only
with the prior approval of the State Government and,
under certain circumstances, also of the Central government.
|
