The Empowered Committee (EC) of finance ministers of States demanded on Monday here that the upper limit on Professional tax, currently capped at Rs.2,500, be removed by amending the constitution.
Article 276 of the constitution empowers the States to levy tax on professions. The article originally envisaged a cap of Rs.250 per annum.
Contending that incomes of professionals had increased manifold after 1998, Bihar Deputy chief minister Sushil kumar Modi said removal of the upper limit on the Professional Tax would bring in more revenue to the States.
The EC also urged the centre to empower the States to impose the Value Added Tax on imports.
