25. Levy of water-tax and earmarking the proceeds for water-works.
(1)Any local authority may with the previous sanction of the Government, and shall, if so directed by them, levy within its area or any part thereof, any tax which may be necessary for providing water supply in such area or part thereof.(2)Any lax levied under sub-section (1) may be a new tax levied on such basis, and assessed and realised in such manner, as may be sanctioned or directed by the Government, or may be a tax or additional tax levied under any head of taxation specified in any law for the time being inforce governing the local authority concerned in which case all the provisions of such law relating to the incidence, assessment or realisation of a tax under such head or in any manner connected therewith shall be applicable to the tax or additional tax, with such modifications and restrictions, if any, as may be prescribed.(3)(a)The rates at which any tax may be levied under this section shall be determined by the local authority with the previous sanction of the Government in case the tax is levied by the local authority on its own motion, and by the Government in case the tax is levied at their direction.(b)The local authority may, with the previous sanction of the Government and shall, if so directed by it alter the rates at which any such lax is to be levied.(4)(a)Every local authority levying a tax under this section shall earmark the net revenue therefrom for the maintenance of sinking fund for replacement of old machinery and for expenditure on the execution, maintenance and improvement of works of water-supply in the local area or part thereof within which it is levied.(b)Such revenue shall be expended in accordance with such orders as may be issued by the Government in this behalf.(5)Nothing contained in this section shall be deemed to affect the power of any local authority to levy a water-rate or drainage tax under any other Act.
