Why is there a need to charge tax by Nagar Nigam?
The health of Nagar Nigam is a critical element of effective urban governance, which will determine whether India realizes her economic and developmental promises. Nagar Nigams have faced growing fiscal deficits, constraints in tax base expansion, and weakening of institutional mechanisms which enable resource mobilization remain challenges to these Nagar Nigams.
Nagar Nigams have a very wide range of area which comes under there jurisdiction, and being administering a city or urban area the demand of infrastructure and public expenditure is much higher. Residents expect the urban bodies to develop a better infrastructure in terms of better roads, better traffic management, better sanitation, better heath infrastructure, etc. But all this comes with its cost, and these urban bodies are required to levy taxes to receive revenue in order to increase public expenditure.
Example of taxes charged by Nagar Nigam includes: Property tax, house tax, sewerage tax, water supply tax, parking fees, toll tax, entertainment tax, advertisement tax, etc.
Which taxes can be imposed by Nagar Nigam?
Taxation has been one of the major source of revenue for states across the world for centuries and India is no exception to this equation. Every nation has a structured tax system that consist of both progressive and proportional taxation based on income and other factors. Rate, Slabs, Exemptions, etc. are determined by the central and the state government. The money received by the government is known as tax revenue and it is utilized for a wide domain of purposes such as infrastructure development in the form of roads, railways, bridges, dams, etc., public healthcare and education, defense, etc.
Table of Content
- What is Nagar Nigam?
- Why is there a need to charge tax by Nagar Nigam?
- Different taxes which are charged by the Nagar Nigam
- Conclusion
- FAQs