Yet another cut in property tax

Yet another cut in property tax
Ruchika M. Khanna
Tribune News Service
Chandigarh, December 19

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)