Punjab aims to mop up Rs 350 crore in property tax next year

Wednesday, 28/11/2012

http://punjabnewsline.com/news/Punjab-aims-at-mopping-up-Rs-350-crore-in-property-tax-next-year.html

CHANDIGARH: Punjab hopes to raise Rs 350 crore during 2013-14 by way of property tax in the state as against Rs 200 crore expected to be collected during the current financial year. Last year, the state government managed to raise only about Rs 198 crore through property tax.

Official sources said on Thursday that an ordinance widening the tax net as also prescribing new rates of property tax was issued by Governor Shivraj V Patil on November 15, following which a government notification in this regard had been gazetted on Tuesday, November 27.

The new rates shall be applicable with effect from April 1, 2013. The new taxation law covers all buildings located in the towns and cities of the state. However, buildings  and lands exclusively used for religious purposes, rites, ceremonies, cremation grounds, burial grounds, cow shelters, stray animal care centers, historical and heritage buildings, so notified by the state or Central government, UNESCO, charitable and philanthropic organizations have been exempted from the payment of this tax.

The tax will be payable at the rate of one per cent of the annual unit value multiplied by the built-up area of the building in cases where the built-up area is 25 per cent or more of the total area of the land; at the rate of 0.25 per cent of the annual unit value multiplied by the area of the land in cases where the land is vacant; and at the rate of one per cent of the annual unit value multiplied by the built-up area of the land and at the rate of 0.25 per cent of the annual unit value multiplied by the remaining area of the land, in cases where built-up area is less than 25 per cent of the total area of the land.

For the purpose of imposition of tax on building and lands, keeping in view the situation of the locality, civic amenities therein and such like factors, the Municipal area should be divided into up to eight zones by a zoning committee consisting of Regional Deputy Director of Urban Local body concerned, who will act as Chairman, local MP, local MLAs and president and vice-president of the Municipality, nominee of the Deputy Commissioner and Executive Officer of the Municipality, who would serve as the Member-Secretary.

The unit value of the building and lands shall be determined by a unit valuation committee consisting of Deputy Commissioner (chairman), local MP, local MLAs, president of the Municipality and Executive officer of the Municipality, who would function as the Member-Secretary.