• The Punjab Municipal Corporation Law (Extension to Chandigarh) Amendment Bill, 2017 was introduced in Lok Sabha by the Minister of Finance, Mr. Arun Jaitley, on July 31, 2017.  It replaces the Punjab Municipal Corporation Law (Extension to Chandigarh) Amendment Ordinance, 2017.  It shall be deemed to have come into force on July 1, 2017, the date on which the Ordinance was promulgated.

• The Bill amends the Punjab Municipal Corporation Law (Extension to Chandigarh) Act, 1994.  The 1994 Act extends the provisions of the Punjab Municipal Corporation Act, 1976 to the Union Territory of Chandigarh. 

• Power to levy Entertainment Tax and Duty:  Under the 1994 Act, the central government has the power to levy Entertainment Tax and Entertainment Duty for Chandigarh.  The Bill transfers these powers from the central government to the Municipal Corporation of Chandigarh.

• This amendment is consequent to the Constitution (101st Amendment) Act, 2016 (GST) which subsumes Entertainment Tax within the ambit of GST, except where it is levied by a panchayat or a municipality.

• Power to levy Octroi:  Currently, the Municipal Corporation of Chandigarh has the power to the levy Octroi and taxes on vehicles and animals.  The Bill removes these powers.

• This amendment is also consequent to the Constitution (101st Amendment) Act, 2016 (GST) which subsumes Entry Tax, including Octroi, within the ambit of GST.

DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it.