NAGPUR: The Vidarbha Taxpayers' Association (VTA) has pointed out that the state government has quietly modified the Bombay Gram Panchayat Act to enable gram panchayats to levy tax on goods entering its area. This tax will be called as local panchayat tax (LPT) and will be similar to local body tax (LBT) being levied by municipal corporations.
VTA secretary TS Renu said that his association feared that once LBT was successfully levied by municipal corporations, municipal councils would be asked to follow the suit.
"Then the panchayats will be asked to levy LPT. Levy of multiple taxes will make business difficult which is against the stated objective of the government," he rued.