Thiruvananthapuram: The Centre has recommended the state to repeal four acts as part of reducing the number of legal compliances. The acts include the 140-year-old Deccan Agriculturists’ Relief Act, 1879, the Kerala Panchayat Raj (Profession tax) Rules, 1996, Kerala Electricity Duty Act, 1963, and State Fire Safety Act.
According to reliable sources in the government, while the state has agreed to repealing the 140-year old act, objections were raised with regard to repealing the remaining three laws, as that would affect the government’s revenue.
The Deccan Agriculturists’ Relief Act, 1879, was originally enacted to provide succour to indebted farmers in certain parts of Deccan region, that was extended to the state as well. The Centre has suggested that since the state has a separate debt relief law, the purpose of this act has been subsumed by other laws. However, since the competent legislature for the subject of agricultural indebtedness is the state, the Centre sought the state’s permission to repeal it. It is reliably learnt that the agriculture department has given nod for repealing the act, and since it is a central legislation, the state has said that the Centre can take necessary steps to repeal it.
However, the state is not in favour of repealing the concerned portion in the municipality and panchayat acts, dealing with profession tax, which is levied and collected by the commercial taxes department of the state. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor, etc, are required to pay professional tax. It is a source of revenue for the local bodies. Since local bodies have very few revenue sources left, repealing this act would result in revenue loss for local bodies, the state feels.
The state is also not in favour of repealing the Kerala Electricity Duty Act, 1963. According to the Centre, charging electricity duty may result in exodus of industrial units, and hence, this law must be repealed.
The suggestion of the fourth act, is still under discussion of the home department. The State Fire Safety Act, which provides norms for the maintenance of fire and emergency services and to make more effective provisions for fire prevention and fire-safety measures in various types of buildings and premises in the state, is being felt as redundant in the wake of the new National Building Code. As per the Centre, such laws should be uniform for all states, rather than a separate law for every state, and so the building code should be the magna carta of the fire and rescue departments.
The suggestions by the department of promotion of industry and internal trade (DPIIT) is part of identifying the compliance burden for citizens, and to simplify them to make such services more people-friendly.