THIRUVANANTHAPURAM: The government has issued an order to sharply increase the employment tax, which is one of the main sources of income for local institutions, from October 1. This is as per the recommendation of the 6th Finance Commission. Along with the order, the revised list of semi-annual employment tax slabs of gram panchayats and municipalities has been released.

Employment tax is levied based on six months salary. There is no change in employment tax rate with 6 months of salary upto Rs 11,999. The tax rate has been reduced from Rs 120 to Rs 320 for those earning between Rs 12,000 and Rs 17,999. For those with salary between 18,000 to 29,999, the new tax is Rs 450. Earlier it was Rs.180.

The employment tax for people with salary between Rs 30,000 to Rs 44,999 will now be Rs 600 (previous tax Rs 300). Rs 750 for those with income between 45,000 and 99,999. Earlier it was Rs.450. There is no change in employment tax for those with salary between Rs.1,00,000 to Rs.1,24,999 and for Rs.1,25,000. These are Rs 1000 and Rs 1250 respectively.

Employment tax is collected from government officials and authorized workers twice in every financial year. The authority to collect taxes

rests with the local self-government bodies.