Karnataka mulling bill to allow panchayats levy tax on services
Bangalore: Karnataka Government is planning to introduce a bill which will give powers to gram panchayats to levy taxes on services provided by commercial establishments, including airports, falling under their jurisdiction to rev up revenue collection.
The government move was prompted by the dwindling gram panchayat revenues to take up developmental works in villages, Rural Development and Panchayat Raj Minister H K Patil said in the state Assembly.
As much as 50 per cent of the gram panchayats across the state will gain from the proposed legislation because the commercial establishments do not render services in the limits of the remaining gram panchayats, Patil said.
The Minister also said that by March 2015 all gram panchayats will get access to broadband facility in the state.
"A company named Bharat Broadband will provide the facility to gram panchayats, and the talks with them are in final stages," Patil added.
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