The Supreme Court on Thursday rejected an application by a public interest group seeking a stay on the Delhi government’s decision to tax the salaries of government employees.
The petitioner, an advocate of a group that wants the tax to be stopped, argued that the tax could lead to an undue burden on private employers.
The court rejected the petitioner’s plea.
The petitioner, Shashi Tharoor, said the government has already set up the tax in the name of the public interest.
He said the Delhi tax will hurt the economy and increase the cost of living for the common man.
The tax has been imposed by the state government for a year on employees of government departments and public corporations, the government said in a letter to the court.
The court had last year issued notices to the Delhi Government seeking a permanent stay on implementation of the tax.
The Centre and the states had opposed the tax, saying it would hurt business investment and employment in the city.
The Supreme Commission for Scheduled Castes and Scheduled Tribes (SCSCS) had also asked the Centre to withdraw the notice.