Internal revenues of Municipality.

Subject to the provisions of this chapter: and such directions as the State Government may give from time to time. the Municipality may levy any tax, user charge or fee as may be specified by that Government: Provided that in no case the rate of tax, user charge or fee shall exceed the rate at which such tax, user charge or fee was being levied on the date immediately before the date of coming into force of this Act and such rate of tax, user charge or fee shall be increased at a graduated rate at such interval as the State Government may direct: Provided further that the State Government may, if it thinks fit, exempt any class or classes of assesses, including those in any peripheral municipal area, till such time the municipal services, the service delivery mechanism, and the requisite amenities under this Act are provided to such class or classes of assesses including those in any peripheral municipal area.