Kerala to approach central government to increase professional tax

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Kerala is planning to approach the central government over increasing the professional tax. The tax, which is the source of revenue for local bodies, has not been increased since 1988. According to Article 276(2) of the Constitution, the professional tax should not exceed Rs 2,500 per annum.

This tax is collected in two phases in a year. Local bodies receive this amount. As the tax is mentioned in the Constitution, an increase in the tax would require an amendment. This has to be done by the Centre.

Finance minister KN Balagopal had said the other day that the tax rate remained unchanged for the past 30 years and should be fixed.

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