The Punjab government has notified the order for collection of ₹200 per month as development tax from all income tax payers in the State. By this, the State expects to raise ₹150 crore annually.
Following the assent of the Governor on April 16, the State government has now notified the Punjab State Development Tax Act, 2018.
The Punjab government had in its Budget for 2018-19 said that it was adopting a prudent fiscal road map with focus on mobilising additional resources to put the State’s economy back on track. It was in this direction that the government had decided to bring in a legislation for imposing a nominal development tax of ₹200 per month on the income tax payees who are engaged in professions, trades, callings and employments.
