RAWALPINDI, July 15: The district government here on Monday proposed imposition of health and education taxes through which it expects to earn Rs15 million.

The budget documents stated: “Two new taxes, education and health tax, have been proposed to be levied during the financial year 2002-03 after observing all codal formalities as required under Punjab Local Government (Taxation) rules 2001.”

The estimated income would be incorporated in the budget after the imposition and realization of income under these heads. The two taxes would be charged at both the private and government run institutions. The education tax, which would be imposed from January 1, 2003, would alone earn Rs10 million.

Mentioning the objective of the tax, the budget documents state: “The levying of education tax has been proposed to minimize the scope of unemployment in the education sector by appointing qualified teachers on contract basis.

“This tax will facilitate the district government to improve the standard of education of those schools where there is deficiency of staff.”

The rate proposed for the tax is Rs5 per month for primary school students, Rs10 for secondary school students and Rs20 for those studying in intermediate and degree classes.

Mentioning exemptions from the tax, the documents stated: “The heads of the institutions would be authorized to give exemption to the poor. The exemption cases should be not more than five per cent of the enrolment.

“In case of more than one brother/sister studying in the same institution, the eldest would pay the full amount of tax, while the rest would pay half.”

An amount of Rs5 million is estimated to be collected as health tax from patients from January 1, 2003.

The rates proposed for the tax state: “Out-door patients should be charged at the rate of Rs10 per patient and the patients admitted in the general ward would pay Rs20. However, those in private wards would have to pay at the rate of Rs20 per day.”

This tax, the budget documents state, has been proposed to promote health facilities in the medical institutions.