Statement of Objects and Reasons appended to the Constitution
         (Sixtieth Amendment) Bill, 1988 which was enacted as
           THE CONSTITUTION (Sixtieth Amendment) Act, 1988


Clause (2) of article 276 of the Constitution specifies that the total
amount payable in respect of any one person to the State or to any one
municipality,  district board, local board or other local authority in
a  State  by  way  of  taxes  on  professions,   trades,  callings  and
employments  leviable by a State Legislature under clause (1) of  that
article  shall not exceed two hundred and fifty rupees per annum.  The
proviso  to that clause, however, enables the continuance of the  levy
of such tax at a rate exceeding two hundred and fifty rupees per annum
in any State, municipality, etc., if in the financial year immediately
preceding  the commencement of Constitution there was in force in that
State, municipality, etc., any such tax exceeding that rate.

2.   Some of the State Governments have represented that this  celling
of  two hundred and fifty rupees which was fixed in 1949, needs to  be
revised  upwards  taking into consideration the price rise  and  other
factors.   It  is  also pointed out that the profession  tax   has,  at
present,  become  almost regressive because of the ceiling since  even
people  with  high salaries have to pay this tax at only  the  maximum
amount of two hundred and fifty rupees per annum.  The upward revision
of  profession  tax  will also help the State Governments  in   raising
additional resources.

3.   It is accordingly proposed to amend clause (2) of article 276  of
the  Constitution  to increase the ceiling of profession tax from  two
hundred  and  fifty rupees per annum to two thousand and five  hundred
rupees  per  annum.   As  the  proviso to this  clause   is  no  longer
relevant, it is proposed to omit it.

4. The Bill seeks to achieve the above objects.

NEW DELHI;                                         B.K. GADHVI.

The 10th August, 1988.


                                                [20th December, 1988.]

An Act further to amend the Constitution of India.

BE  it enacted by Parliament in the Thirty-ninth Year of the  Republic
of India as follows:-

1.   Short  title.-This Act may be called the  Constitution  (Sixtieth
Amendment) Act, 1988.

2.   Amendment of article 276.-In article 276 of the Constitution,  in
clause (2),-

(a)  for  the  words "two hundred and fifty rupees",  the  words  "two
thousand and five hundred rupees" shall be substituted;

(b) the proviso shall be omitted.