MP: Cabinet decides to widen professional tax ambit, faces flak
Brace to pay more for medical services such as radiology and pathology as the Madhya Pradesh cabinet decided on Monday to widen the ambit of professional taxes, drawing criticism from experts and the opposition Congress.bhopal Updated: Nov 23, 2015 22:41 IST
Brace to pay more for medical services such as radiology and pathology as the Madhya Pradesh cabinet decided on Monday to widen the ambit of professional taxes, drawing criticism from experts and the opposition Congress.
The cabinet also decided to amend the Indian Stamps Ordinance to impose duty on more business deals.
The amendments are aimed at increasing the state’s revenue, state government spokesperson Narottam Mishra said, adding the Bills would be tabled in the assembly for a revision.
So far, organisations such as banks, insurance companies and cooperative societies are coming under the ambit of professional tax. But after the possible amendment to the Bill, every branch of these organisations would be considered as separate entities and would have to pay professional tax separately.
Also, the cabinet decided to come up with two slabs to realise taxes from property brokers and video parlours -- places with population above 25,000 and others with below 25,000 people.
Professional tax for hotel business and travel agencies has also been proposed for a revision after the amendment
“The state may earn revenue about Rs 10 crore from stamp duty and about Rs 50 crore from the professional tax in the next four months,” said finance minister Jayant Malaiya.
Advertisement and other work contracts have been included in the list of stamp duty.
Stamp duty of 0.25% would be imposed on the money involved in business transaction. Stamp duty on sale deed of property would be charged on market rate or buying price- whichever is highest.
The finance department has high hopes from the stamp duty to be levied on mining lease deeds. Overall 0.75% stamp duty would be charged on the total amount paid for the lease deed.
The cabinet decision have come under criticism as experts said such ultimately increase in taxes would affect the consumer.
“The doctors are already paying professional tax and their services too would be charged with the same tax. This is duplication of tax which is not good,” said Dr Shailesh Lunawat, the president of the Indian Radiological and Imaging Association.
Economic commentator Rajendra Kothari accused the government of fleecing the citizens.
“I pay 0.50% cess for Swatchh Bharat to municipal corporation, panchayat body and also to the Central government. People are being burdened with more and more taxes just for the luxury of government servants and politicians,” said Kothari.
The opposition Congress also upped the ante against the government, saying mismanagement of funds had brought the state to bankruptcy.
“The state government has taken a loan of about `10,000 crore in the current financial year, taking the overall loan amount to more than Rs 1 lakh crore. Now, the poor have to pay for the government misdeeds,” said Congress spokesperson Ravi Saxena.
BRACE TO PAY MORE
Professional tax for hotel business and travel agencies will be revised
There are three slabs of Rs 1000, Rs 1500 and Rs 2500 of professional tax and is charged per annum
Stamp duty of 0.25% will be imposed on money involved in business transaction
Stamp duty on sale deed of property will be charged on market rate or buying price - whichever is the highest
0.75% stamp duty will be charged on the total amount paid for the lease deed.