Question

Under the powers granted to Panchayats, which of the following activities can they levy taxes on?

• A. National income tax
• B. Toll fees for local bridges and roads
• C. State sales tax
• D. Import duties on foreign goods

Answer 1

Answer:

B. Toll fees for local bridges and roads

Panchayats are empowered to levy taxes, duties, tolls, and fees that are applicable at the local level, such as toll fees for local infrastructure, while broader tax powers remain with the central and state governments.