In order to augment the revenues of the State, it is considered necessary to levy a tax on professions, trade, callings and employments.
Salary and wage earners having a monthly income of Rs. 500 and above will be required to pay the said Tax, according to a graded scale. Self-employed persons will be required to pay fixed amounts ranging from Rs. 50 to Rs 250 per year, the levy being based on broad criteria related to the earning capacity of different groups of profession.
Provision is made for registration of employers and enrolment of self-employed persons and the procedure for the levy and collection of the Tax is laid down.
A provision is also made for appeals and other ancillary matters for the administration of the Tax.
With the levy of Profession Tax by the State Government, the power to levy this tax which the local bodies have at present is proposed to be withdrawn.
However, provision is also proposed for reimbursement of the loss of revenue to such of the local bodies as are levying the tax at present.
