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Some powers of panchayats

Panchayats are free to choose their development priorities, allot funds and set time-limits for programme implementation, generate internal resources, collect taxes and impose fines.

They will be able to trade, remove structures and trees, maintain sanitation, drainage, water works and sources of water, regulate use of water and slaughter of animals, establish workshops, factories and other industrial units and ensure environment control.

The panchayats can levy taxes on businesses and commercial activity, collect market fees from those operating inside panchayat territory, impose registration fees on animals sold in the market and tax owners of animals used for public transport. The panchayats have also been empowered to levy encroachment penalty.

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