Center suggests states review alcohol and property tax
New Delhi: The central government has requested state governments to periodically revise alcohol excise duty and property tax to improve their finances. They were also asked to rationalize the regimes and liquidate the autonomous bodies.
The Finance Secretary also indicated the Centre’s review of schemes, with each Centrally Sponsored Scheme (CSS) being assessed and reassessed before a decision on whether to continue is made. Of the 130 CSS, 60 were merged into larger schemes and five were liquidated, reducing the number of operational schemes to 65 currently.
Center cuts windfall tax on gasoline, diesel, jet fuel and crude oil as international rates drop
Profiting from the suffering of a sick person: IMA calls for the withdrawal of GST on health services
We learn that the Secretary of Finance has also told senior state bureaucrats that property tax could be a dynamic source of revenue, with a progressive regime that focuses on the wealthiest segments will be in line with the recommendations of the Finance Committee , reported ToI. .
Municipal agency revenues represent less than 0.8% of GDP, compared to 6-7% in countries such as South Africa and Brazil. The Center also suggested a higher user fee for services offered by states.