Plea to lift cap on professional tax

The Empowered Committee of State Finance Ministers has asked the Centre to remove the ceiling on professional tax. The Committee has sought a Constitutional amendment for this.

According to Article 276 of the Constitution, “The total amount payable in respect of any one person to the State or to any one municipality, district board, local board or other local authorities in the State by way of taxes on professionals, trades, calling and employment shall not exceed Rs 2,500 per annum.”

The Committee says that the ceiling on Professional Tax was last fixed in 1998. Even the 13th Finance Commission had clearly mentioned that the maximum limit on professional tax should be raised from the present value. The Committee feels that prescribing a ceiling on Professional Tax in the Constitution is not necessary.