mumbai the state government is considering handing over the right to collect professional tax entertainment duty and nonagricultural tax to municipal corporations once gst is rolled out an official said revenue from these tax sources will aid civic bodies including the bmc helping them bridge the revenue gap as they will lose octroi and local body tax to gstthe state government will compensate the municipal corporations for the loss but by handing over the collection of some taxes to the civic bodies the direct compensation amounts in a way will be brought down it will not only help them earn revenue but also the collection of such taxes rather local in nature will be done much more effectively said a government official it is also in keeping with our ease of business principlea senior official from the state finance department said the government earns rs 4000 crore every year from professional tax entertainment duty and nonagricultural taxwhich is a small fraction of the states total annual revenue for this reason the official said the government doesnt make enough efforts to properly collect these taxes but local bodies given their much smaller revenue collections compared with the state will take this work seriously he said mumbais share alone is about 50 of the rs 4000 crore the state collects under the three tax heads