(1)A Gram Panchayat shall levy in the village,-(a)a House-tax;(b)kolagaram or katarusum that is to say, tax on the village produce sold in the village by weight or measurement or number subject to such rules as may be prescribed;(c)such other tax as the Government may, by notification, direct any Gram Panchayat or class of Gram Panchayats to levy subject to such rules as may be prescribed:Provided that no such notification shall be issued and no such rule shall be made except with the previous approval of the Legislature of the State.(2)Subject to such rules as may be prescribed the Gram Panchayat may also levy in the village,-(i)a tax on agricultural land for a specific purpose;(ii)fees for use of porambokes or communal land under the control of the Gram Panchayat;(iii)fees for the occupation of building including chavadies and sarais under the control of the Gram Panchayat;(iv)special taxes;(v)user charges;(vi)encroachment fee (land rent).(3)Every Gram Panchayat may, with the previous approval of the prescribed authority also levy, in respect of lands lying within its jurisdiction, a duty in the form of a surcharge at such rate, not exceeding twenty-five naya paise in the rupee, as may be fixed by the Gram Panchayat on the local cess leviable under section 135 of the Telangana District Boards Act, 1955, (Act 1 of 1956) and on the education tax leviable under section 37 of the Telangana Education Act, 1982, (Act 1 of 1982).(4)Any resolution of a Gram Panchayat abolishing an existing tax or reducing the rate at which a tax is levied shall not be carried into effect without the previous approval of the Commissioner.(5)The manner of collection of the above taxes and devolution thereof shall be as may be prescribed by the Government.
