Bengal Secretariat issues strict warning to Panchayats on unauthorized tax collection, threatens strict action

The West Bengal government has issued a strict directive to all Panchayats across the state regarding unauthorized tax and fee collection. The three-tier Panchayat system, comprising Zilla Parishads, Panchayat Samitis, and Gram Panchayats, has been instructed not to impose any tax or fee without prior approval from the state government. The secretariat clarified that Panchayats must obtain official permission before introducing any new revenue measures.

Complaints from several districts indicated that some Panchayats were independently levying new taxes and fees without authorization. Following these reports, Chief Minister Mamata Banerjee expressed displeasure, which led the Chief Secretary Manoj Panth to issue clear instructions to all District Magistrates. The directive mandates strict supervision to ensure Panchayats comply with the established procedures for tax collection.

The Chief Secretary stated that "before imposing any tax or fee, Panchayats must seek approval from the state government’s finance or Panchayat department." The government also ended the use of handwritten receipts and introduced a digital system named ‘Sahaj Saral.’ This portal operates on unified accounting software and is designed to record all Panchayat revenues systematically, including income from land, buildings, properties, ghats, grounds, and tenders.

Block Development Officers (BDOs) have been assigned the responsibility to monitor and verify that Panchayats adhere to the guidelines for tax collection. The government has warned that any breach of these rules will result in strict action against the Panchayat involved. This enforcement aims to maintain standardized financial procedures and transparency across local governance bodies.

The state government’s existing guidelines on tax collection remain in effect, with the new measures reinforcing compliance and accountability. The shift to digital revenue recording via the ‘Sahaj Saral’ portal marks a significant step toward modernizing financial administration within Panchayats throughout West Bengal.