Minister for Municipal Administration M Mahidhar Reddy on Tuesday admitted that the State Government itself was levying and collecting Motor Vehicle Tax and allocating a very nominal part of it to the municipal bodies.
Replying to a question raised by MIM MLCs Syed Alfaq Hyder Rizvi and Syed Aminul Hasan Jafri, he said that it was fact the Second Finance Commission has recommended that 10 percent of Motor Vehicle Tax realized by the State Government be given to the urban local bodies including the GHMC.
He also informed the House that the government has agreed to devolve Rs 100 crores per annum in lump sum to ULBs and Rs 200 crore to Panchayat Raj institutions towards Second State Finance Commission grants based on the recommendation of the Cabinet sub-committee. (INN)