KHADC revokes professional tax notices to small businesses

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By Our Reporter

SHILLONG, Oct 9: The Executive Committee (EC) of the Khasi Hills Autonomous District Council (KHADC) has revoked orders issued to small shops and tea stall owners, asking them to pay professional tax to the council. At the same time, the KHADC will issue a show-cause notice to the officer responsible for issuing the tax directives.
The decision came after reports in a section of the media accused the VPP-led Executive Committee of harassing small businesses by demanding professional tax.
KHADC Chief Executive Member (CEM) Winston Tony Lyngdoh said that all such notices will be recalled, as they were issued illegally and without proper authority.
He said the notices were sent out between September 29 and 30, during a transition period when former CEM Shemborlang Rynjah had resigned and the previous EC had been dissolved.
Clarifying further, Lyngdoh said professional tax has been in place since 2012, after the state government handed over the responsibility of collection to the district councils.
He noted that professional tax is a key revenue source for the council, but acknowledged the current economic difficulties faced by citizens.
Lyngdoh said the officer who issued the notices without authorisation has been identified. “We have served a show-cause notice requiring him to explain within seven days why he acted without the knowledge of the EC or senior officers,” he said.
“We cannot suspend any officer without giving them a chance to explain. Once we receive the reply, we will decide whether to suspend the officer or not,” Lyngdoh added.
Providing details of the professional tax structure, the CEM informed that the tax is paid once a year and applies only to individuals earning above Rs 50,000 annually.

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