The Statement of objects and Reasons for enacting the law which was appended to the Bill No. 30 of 1987 and published in part IV-A-Extra., A.P.Gazette d/27-3-87, read as follows :-
"STATEMENTS OF OBJECTS AND REASONS:- At present the levy and collection of profession tax is administered by the local authorities under different enactments. In order to rationalise the levy and collections of profession tax and also with a view to improve the collection thereof, it is decided by the Government to enact a single comprehensive enactment for the purpose of levy and collection of profession tax instead of under different enactments and to entrust the administration thereof to the Commercial Tax Department for effective collection. Persons whose salary or wages does not exceed
rupees one thousand per month, persons in professions whose annual income does not exceed Rs. 12,000 and traders whose total turnover i any year does not exceed rupees one lakh are exempt from the levy of profession tax.
|It has also been decided to provide for the annual grant to the local authorities concerned an amount based on the highest collections of taxes, penalties and interest in any year during the threee years immediately preceeding the commencement of this Act to compensate the loss of revenue to those local authorities since the said local authorities shall not collect any cess or tax on professions, traders, callings and employment on and from the date of commencement of this Act.
This Bill seeks to give effect to the above decision." |