Yet another cut in property tax
Friday, 20/12/2013
http://www.tribuneindia.com/2013/20131220/punjab.htm#3
Chandigarh : Punjab is all set to provide relief to hundreds of property tax payers by lowering its rate on residential and commercial buildings that have been rented out by their owners.
The tax on rented residential property is to be slashed from 7.5 per cent to 3 per cent and on commercial property from 10 per cent to 7.5 per cent.
The agenda for lowering the tax will be taken up during the Punjab Cabinet meeting scheduled next week. Once the go-ahead from the Cabinet comes, the Local Bodies Department, which is collecting the tax, will be issuing a related notification.
Confirming the development, Local Bodies Minister Anil Joshi told The Tribune that the decision to lower the tax on these two sectors had been taken so as to provide maximum relief to assesses who were now in the process of depositing the tax.
Though approval from the Cabinet is yet to come, Joshi said he had already issued directions to all municipal corporations and municipal councils that they collect tax as per the new slab.
The government move has come following large-scale dissent among people over the tax. The step is also being seen as an attempt by the SAD-BJP alliance to keep its urban vote-bank intact.
Till date, the government has collected Rs 170 crore as property tax, the highest amount coming from Ludhiana. Sources said tax collection from commercial property was low as compared to residential units.
Joshi said the protest against the tax was unjustified as it, after the latest cut, was quite less as compared to house tax. This is the third time the government is diluting the property tax.
The government is already giving a rebate of 10 per cent to all those who are depositing the tax before December 31.
New slab
The tax on rented residential property is to be slashed from 7.5 per cent to 3 per cent and on rented commercial property from 10 per cent to 7.5 per cent
Penalty on those depositing tax between January 31 and March 31 reduced from 25 per cent to 10 per cent. Those depositing the tax after March 31 will have to pay a penalty of 20 per cent (plus interest)
