Analysis of Tax Revenue of GPs and its Co-factors at the Household Level: A study on selected Villages of Selected GPs of Bagnan-I Block of Howrah District of West Bengal in India

Abstract

Various issues relating to participation of people in own resource mobilization of Gram Panchayats were discussed at the disaggregate level involving 300 sample households randomly selected from 6 sample villages of 3 Gram Panchayats of Bagnan1 block of Howrah district. The amounts of tax paid were low and largely varied across the sample households. The low amount paid in the form of tax on land and buildings is, according to the sample households, mainly due to the lack of proper assessment on the value of land and buildings, irregularity in collection of tax by the Panchayats and lack of political will of the Panchayat members. There are some institutional constraints on mobilization of tax revenue by the Gram Panchayat (GP). The estimated tax per household as per Panchayat Rules was several times higher than actual amount realized at the Gram Panchayat level. The relatively low performance of GPs in tax revenue mobilization is attributed to their unwillingness in optimally applying the tax instrument for fear of unpopularity at the Panchayat level. Besides, in the absence of any post of tax assessor Gram Panchayat find it difficult to assess the present value of land and buildings on which the tax amount has to be scientifically assessed. Gram Panchayat alone has been empowered to assess and realize any tax, viz. tax on land and buildings. In this section we analyse the sample households’ payment to Gram Panchayats during financial year 2014- 15. Households’ payment to Gram Panchayat may be in the form of tax on land and buildings and fees for different services of Panchayats. To examine the issues relating to participation of people in own resource mobilization of Gram Panchayats (GPs) there is a need for disaggregate level analysis of own resource mobilization of Panchayats at the household level against their socio-economic characteristics. This is done in this paper based on the primary data that have been collected from 300 sample households. These households are randomly selected from 6 sample villages of 3 Gram Panchayats of Bagnan1 block of the district.