Zee Media Bureau
New Delhi: The states are likley to receive more powers in their hands in order to decide the ceiling on the professional tax, as per a report in Times of India.
This tax is levied by the municipalities in the states such as Maharashtra, Gujarat, Tamil Nadu and Karnataka.
The decision is aimed at imparting more strength to the states and decentralisation of powers.
Post this move the states will be in a flexible position to to fix professional tax and ensure more revenue is added to their treasury.
Presently, state and civic bodies which levy the tax are empowered to levy it at a ceiling presently capped at Rs 2,500 annually.