Bhubaneswar, June 9: Residents of gram panchayat areas in Odisha may soon have to pay property tax and professional tax as the state moves to implement recommendations of the 16th Central Finance Commission (CFC). The proposed measure aims to strengthen the financial autonomy of panchayats and improve local revenue generation.
Under the new framework, households in rural areas are likely to pay around ₹1,200 annually as house and property tax. Traders, shopkeepers and other professionals will also be brought under the ambit of professional tax.
The Centre has linked financial incentives to the revenue performance of panchayats. Panchayats that succeed in increasing their own-source revenue will be eligible for higher Performance Grants, while those failing to meet prescribed targets may miss out on additional funding.
For the 2026-27 to 2030-31 period, the Central Government is expected to provide ₹11,715 crore and the State Government ₹10,150 crore to panchayats. In addition, Odisha is slated to receive ₹3,742 crore from the Centre as Performance Grant over the next five years, accounting for 10 per cent of the total allocation.
Meanwhile, the Panchayati Raj Department has directed all gram panchayats to prepare their Gram Panchayat Development Plans (GPDPs) by June 30 in accordance with Central Government guidelines.
Officials said the move is aimed at improving fiscal discipline, enhancing local governance and ensuring greater accountability in rural development planning.
