Karnataka seeks Constitution amendment to hike professional tax

New Delhi: The state urged the Centre to amend Article 276 of the Constitution to increase the upper limit of professional tax.

In the pre-budget meeting with state finance ministers convened by Union Finance Minister Nirmala Sitharaman, Revenue Minister Krishna Byre Gowda requested the Centre to amendment to Article 276 of the Constitution to increase the upper limit of Professional Tax from Rs. 2,500 to Rs. 6,000 per annum, reflecting economic growth and inflation, a statement from the state government said.

Gowda attended the meeting on behalf of Chief Minister Siddaramaiah, who holds the finance portfolio.

Professional tax was levied by the state government on salaried or self-employed individuals. Total 17 states including Karnataka impose a professional tax.

At present, Rs 25,000 monthly and above salary have to pay Rs 200 monthly as professional tax. On the other hand, as per the Karnataka Professional Tax Act, Establishments were needed to obtain professional tax enrollment on an annual basis by paying fees of Rs. 2500.

The cash strapped state government has expressed its inability to share its cost for upcoming railway projects in Karnataka and asked the Centre to spend from its own pocket.

In the pre-budget meeting with state finance ministers convened by Union Finance Minister Nirmala Sitharaman, Revenue Minister Krishna Byre Gowda requested the Centre to bore the 50 per cent land acquisition of and 100 percent construction costs for new railway line construction, said a statement from the state government

At present, the state is providing free lands to the railway projects including providing compensation to land losers and 50 percent construction cost of new lines. Several states including Karnataka had signed an agreement with the railways to provide free land and share 50 per cent cost of the project to expedite the railway lines in their respective states as the railways.

The Minister also urged the Centre to increase the central contribution for social security pension schemes. “In FY 2023-24, Karnataka spent Rs. 10,554 crore on social security pensions, while the

Centre contributed a mere Rs. 471 crore (4% of the total expenditure),” he said.

Since Ayushman Bharat excludes many families, the state urged to include 1.14 crore families covered under the National Food Security Act for equitable health coverage from existing 69 lakh families.

While seeking a scheme to improve infrastructure in like Bengaluru, Mysuru, and Hubli, the Minister also urged the Centre to increase in Central share under PMAY(Urban) to Rs. 5 lakh per beneficiary from Rs. 1.5 lakh, increase in Central share under PMAY(Grameen) to Rs. 3 lakh per beneficiary (from Rs. 72,000).