6th Punjab Finance Commission: Mann government accepts key recommendations, ATR in next assembly session

The Bhagwant Mann-led Aam Aadmi Party government has accepted the key recommendations of the Sixth Punjab Finance Commission regarding the devolution of tax revenues and their apportionment between the panchayati raj institutions and municipal bodies in the state. Bhagwant Mann-led Aam Aadmi Party government has accepted the key recommendations of the Sixth Punjab Finance Commission regarding the devolution of tax revenues and their apportionment between the panchayati raj institutions and municipal bodies in the state. The commission headed by former chief secretary KR Lakhanpal, in its report submitted to governor Banwarilal Purohit in March 2022, recommended that 3.5% of state’s net own tax revenues, which were estimated at ₹7,704 crore for the period from 2021-22 to 2025-26, to be devolved to the panchayats and urban local bodies be distributed between them in the 55:45 ratio. The commission, which as per its terms of reference was required to determine the taxes, duties, tolls and fees to be assigned to the panchayats and municipalities, also recommended devolution of another ₹4,212 crore accruing from stamp duty and registration fee, value added tax and professional tax from 2021-22 to 2025-26 to the local bodies.