With property tax emerging as one of the main issues for the SAD-BJP alliance’s dismal performance during the recently-concluded lok Sabha elections, Punjab Government is considering to relieve vacant plot holders, exempt residents having houses with an area of up to 125 square yards from paying the levy, and de-linking tax payment from collector rates.
Amid growing voices against property tax, the State Government has proposed these steps in its rationalisation and simplification exercise before implementing the property tax during 2014-15. The new proposal of property tax will now be put before the Punjab Cabinet for its approval. “We have decided to exempt people living in houses of up to five marlas (125 square yards) from payment of property tax which will be a big relief for them,” said the State local Bodies Minister Anil Joshi.
He said that further, vacant plots will not attract any property tax, and it will also not be imposed on areas that are declared slums.In a major property tax rationalisation and simplification exercise, the State Government has also planned to ‘de-link’ property tax payment from collector rates after residents and industry complained of huge amount to tax payout because of collector rates.
“We will de-link collector rates from property tax payment. A new method will be rolled out wherein a rate as per square feet will be announced to calculate property tax both for residential and commercial properties,” Joshi said.During back-to-back meetings, brainstorming sessions at the party forum or at administrative levels, property tax was being considered as one of the reasons behind harming the electoral prospects of SAD-BJP candidates in 2014 general elections. Alarmed, the Punjab Government announced to “tweak with” the property tax system.
Chief Minister Parkash Singh Badal had announced to review the property tax system “in the larger interest of public” while Deputy Chief Minister Sukhbir Badal had declared that property tax would not be charged as per collector rates.