Municipal Finance

A. Taxation

Municipal bodies are authorize to levy certain taxes(direct/indirect) subject to confirmation by the Government.

B. Non-Taxation

This source includes items like rents(of municipal property),fees(for issue of licenses,permits etc.), fines(realised for offenses against municipal bye-laws, rules, regulations etc.), interest (on investment), profit(from public utility undertakings like water, passenger transport, electricity supply). The Government has notified rates/maximum limits of Following Taxes/Fees which are being imposed by the municipalities in order to raise sources for income

Name of the Taxes/Fees Rates
House Tax 7.5% to 12%
Show Tax Rs.50/- per show
Dog License Fee Rs.50/- per annum
Building Plan Fee Rs.2.50 paise for residential/ Govt. and Rs.5.00 for commercial per sq.mtr.
Tax on the consumption of Electricity 1 paise per unit
Sale of liquor Rs.1/- per bottle
Cess on the transfer of immovable property 2% of the amount

 

In addition to above, generally, the following taxes/fees are being collected by the 
municipalities vide resolutions in their respective houses:

Name of the Taxes/Fees Rates
License for Dangerous and Offensive trades Rates are varied in respective ULBs
Rehari License Fee
Tehbazari Tax
Slaughter House Fee
Cattle Pound Fees
Birth & Death Certificate Fee
Copying Fee
Tree Cutting Fee
Library Membership
Ground Tax
Vehicle License Fee
Death & Birth Reg./ Late Fee
Forest /Garden Income
Animal Tax(Cattle Pound)
Trade License Fee
Tax on advertisement other than advertisement published in the newspaper.