Create a custom practice set
Pick category, difficulty, number of questions, and time limit. Start instantly with your own quiz.
Generate QuizGK Question
Article 243X empowers State Legislatures to authorize Municipalities to levy, collect, and appropriate taxes such as property tax, profession tax, and ______ for local development and service delivery.
- customs duty
- advertisement fees
- income tax
- corporate tax
Answer: advertisement fees
Municipal taxation powers: (a) Article 243X (74th Amendment): Empowers State Legislatures to authorize Municipalities to levy, collect, appropriate: (i) Taxes: Property tax, profession tax, entertainment tax, (ii) Fees: Advertisement fees, market fees, user charges for services (water, sanitation), (iii) Tolls: On municipal roads, bridges under Municipality jurisdiction, (b) Applications: (i) Local revenue: Municipalities use taxes, fees, tolls to fund urban infrastructure, services (roads, water, sanitation, street lighting), (ii) Fiscal autonomy: Own revenue sources reduce dependence on State grants, enhance Municipality autonomy in planning, implementation, (iii) Accountability: Local taxation enhances accountability; citizens more likely to demand quality services when they pay taxes, (c) Challenges: (i) Limited tax base: Informal economy, property undervaluation limit Municipal own revenue, (ii) Collection capacity: Municipalities lack staff, systems for efficient tax collection, enforcement, (iii) Political resistance: Local taxation may face resistance from voters, businesses, limiting Municipality willingness to levy taxes, (d) Illustrates fiscal federalism: Article 243X provides framework for Municipal taxation; effective devolution requires political will, capacity building, adequate revenue sources for urban self-governance.