Restriction on the imposition of a drainage tax :- (1) Save as is herein

otherwise provided, the drainage tax shall be subject to the following restrictions, namely—

1. (a) [FEA]
2. (c) thatthe rate on the annual value of holding at which the tax may be imposed shall not without the previous sanction of the State Government exceed ten percentum;
3. (d) that in fixing the rate at which the tax is to be imposed, regard shall be had to the principle that the total net proceeds of the tax shall not exceed the amount required for making, extending or maintaining the drainage or sewerage system and in any area in which a sewerage system has been established, the amount required for the cleansing of private and public latrines, urinals and cesspools and public water closets and the provision and maintenance of public latrines, urinals and water closets together with I. Omitted by the Orissa Act 16 of 1968, w.e.f. 01.08.1968. an amount sufficient to meet the proportionate share of the cost of supervision and collection and the repayment of capital and payment of interest on any loan incurred in connection with any such drainage or sewerage system; and
4. (e) thatthe tax shall be leviable in any area until a drainage or sewerage system has been established within such area nor shall the tax be leviable for any quarter or portion of a quarter antecedent to the establishment of such system; [CR Ra

² Substituted by ibid.

1. (2) Nothing in this section shall prevent the municipality from making any special arrangement consistent with this Act for the extension of a drainage or sewerage system to holding situated beyond the radius fixed by the municipality. 3)'[**#] 2[135-A. Exemption from service taxes :- (1) All holdings which are used exclusively for agricultural purpose shall be exempted from imposition of taxes referred to in clauses (b) to (e) of sub-section (1) of Section 131.
2. (2) Where the municipality is satisfied that the owner of occupier of any holding, other than those mentioned in sub-section (1), has made sufficient arrangement at his own cost for any of the services for which tax is leviable under any of the clauses aforesaid it may, with the prior sanction of the Director, exempt such holding from imposition of the tax in respect of such service.]