Punjab hikes 1 pc levy on market, rural development fee

In a bid to mobilise additional resources in the Punjab Mandi Board and Punjab Rural Development Board, the state cabinet today decided to hike 1 per cent charge in market development fee and rural development fee (RDF).
The hike is likely to mop up additional funds to the tune of Rs 900 crore per annum, a spokesperson of the Chief Minister's Office said here.
He said that the government will soon promulgate an ordinance to amend the Punjab Agricultural Produce Market Act, 1961 to achieve this objective.
The spokesperson disclosed that as per the Punjab Agricultural Produce Market Act, 1961, MDF (market development fee) is levied ad valorem at the rate of 2 per cent.

"As per Section 5 of the Punjab Rural Development Act, 1987, RDF is also levied at the same rate of 2 per cent. The fee so collected by the Market Committees is remitted 100 per cent to the Punjab Rural Development Board and the funds mobilised from MDF are utilised for building rural infrastructure, including rural link roads, for the benefit of the farmers," he said.