The Empowered Committee of State Finance Ministers here today demanded that the upper limit on levying the professional tax be removed.
“The panel after deliberating on the issue of professional tax came to the conclusion that the upper limit of Rs 2,500 imposed by the Constitution in 1988 should be waived [removed] forever,” committee Chairman Sushil Kumar Modi told reporters.
Modi, who is also Bihar’s Deputy Chief Minister, said the panel is of the view that by removing the upper limit states will get more tax under this head. After 1988, income of the professionals too have increased a lot, the committee noted.
“Consensus has been evolved on the issue among the panel members and it will urge the Centre to suitably amend the Constitution in this regard,” Modi added.
The panel also suggested on giving powers to the state to add VAT on imports, he added.