Law:

Section:

  Punjab Local Councils (Taxation) Rules, 1980--- ----Rr. 3 to 9---Taxation proposals how mature into a tax---Stages detailed-- Framing of tax proposals, public notice inviting objections, hearing of objections by Sub-Committee and formulation of its report, convening of the special meeting, consideration of the tax proposals and its sanction and publication of notification in the official Gazette and Public Notice, are mandatory stages and if any step is missing that will vitiate the taxation itself. According to rule 3 of Punjab Local Councils (Taxation) Rules, 1980 while framing annual budget or revising the budget Local Council or its Chairman shall review the financial position and if it calls for any change in the tax structure he shall draw up taxation proposal. The taxation proposal shall be separate for each tax and to be framed in form of a draft tax notification indicating the class of persons or category of the property proposed to be taxed and the rate of the proposed tax. The formulation of the proposal is to be followed by issuance of a public notice inviting objections in respect of the taxation proposals. The notice is to specify the main features of proposal, class of persons or description of property to be affected, amount or rate of tax to be imposed, whether rate has been increased, reduced or modified etc. Then comes the hearing of objections and suggestions to the preliminary taxation proposals in accordance with the rule 5. Thereafter the special meeting of the Local Council is to be convened as required under rule b wherein the Local Council shall consider the taxation proposals. It may decide to proceed with the tax proposal with or without modification or it may reject it by majority vote. The draft notification shall be put to vote and if approved by majority of the members, taxation proposal shall stand sanctioned by the Local Council as per rule 8. The last step is the publication of notification in official Gazette and also publishing of tax notification in form of public notice. It is clear from the perusal of rules 3 to 9 that following are the stages going through which a proposal matures into a tax:-- framing of tax…