Allocate more funds, allow tax on advt: Urban bodies to finance panel

15th Finance Commission meets various groups, promises to address demands

LUCKNOW: Urban local bodies on Monday urged the 15th Finance Commission to consider earmarking more funds to them and also allow them collect tax on the revenue received from advertisements in municipal corporations and other town areas.

“Property tax is the main source of revenue, but this is limited. A demand to allow urban local bodies to collect tax on the revenue on advertisements has been made,” said Vinod Kumar Agarwal, mayor Moradabad Municipal Corporation after meeting with the 15th Finance Commission.

A senior officer of Lucknow Municipal Corporation said tax on revenue was a major source of income for urban local bodies but this tax is now part of the GST. “We also demanded central assistance for urban local bodies for viability gap funding on urban public transportation,” said Agarwal. The 15th Finance Commission, led by Chairman NK Singh, arrived here on Monday. The Commission carried out field visits in Varanasi on Saturday and Sunday. Other issues discussed before the Commission included lack of civic amenities, lack of safe drinking water.

Chairperson Dayalbagh town area of Agra GP Mehra said installation of handpumps should be discouraged in urban areas due to high cost of maintenance. She said funds should be provided to urban local bodies to buy steel water tankers instead of iron water tankers.

“Additional 10 percent to 15 percent funds should be provided for development of old areas in

metropolitan towns. New areas are developed while no development takes place in old ones. Additional funds should be provided for overall development of Uttar Pradesh,” said Nagar Nigam Ghaziabad, corporator Rajiv Sharma.

Besides urban local bodies the representatives of panchayats and political parties also met the Commission. A demand for more funds for restoration of ponds and lakes was also made in view of depleting ground water level.

“The Commission noted all concerns and promised to address them in its recommendations to the government,” said an official spokesman. Senior Congress leader Salman Khursheed said the Commission should allocate more funds to Uttar Pradesh. He said the state’s share in central taxes had come down earlier.