The Punjab Cabinet on Tuesday approved the draft of the State Goods and Services Tax (SGST) Bill to be presented in the assembly's Budget session beginning June 14.
The Cabinet meeting chaired by Chief Minister Amarinder Singh was held here.
The enactment of SGST Bill will pave the way for the repeal of the Punjab Municipal Fund Act of 2006 and the Punjab Municipal Infrastructure Development Act of 2011.
An official statement said it will boost the state exchequer by enabling deposit of 100 per cent of Value Added Tax and additional tax thus collected on petroleum products and liquor in the treasury.
The Cabinet also decided to present the draft bill on appointment of administrators to market committees and an amendment to the Punjab Agricultural Produce Markets Act of 1961 in the Budget session, it said.
The Cabinet also approved the report of the Fifth State Finance Commission submitted to the Governor.
The Finance Commission recommended the continuation of the existing devolution of four per cent share of net proceeds of the state taxes to local bodies from 2016-17 to 2020-21.
This will help transfer Rs 4,364.40 crore (estimated) to both rural and urban local bodies in Punjab, since the state government has accepted the commission's recommendations regarding the share of urban local bodies and inter-se distribution among Panchayati Raj institutions.
--IANS
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