Expected to provide relief to the people by rationalisation and simplification of property tax
Punjab Cabinet is expected to provide relief to the people on Tuesday by rationalisation and simplification of property tax, which is on its agenda for its meeting scheduled for Tuesday. The SAD-BJP six-member coordination panel, formed to resolve various contentious issues between the two alliance partners, has proposed the state government to simplify the procedure for paying the tax along with changing the formula for its calculation.
Sources informed that the vacant plots and the houses below 125 square yards area have been exempted from the property tax. Besides, areas which have been declared as slums will also not attract any property tax.Other than that, delinking of property tax from the collector’s rate is also part of the proposal to be put forth the Cabinet for its approval.
A member of the SAD-BJP coordination panel informed The Pioneer that it has proposed considerable reduction in the property tax, and the same recommendations would be placed before the Cabinet. The leader informed that the earlier formula of calculating the property tax by taking into account the collector’s rate of the area received lot of criticism, leading to change in the same procedure.
As per the new formula for calculating the property tax, the tax would be calculated on the basis of per square yard for both commercial and residential properties. The issue of property tax emerged out as one among many others reasons for SAD-BJP coalition’s disappointing performance during 2014 general elections. Soon after the parliamentary polls, the coalition formed a joint panel to find a solution of various issues that cost loss on seven out of 13 lok Sabha seats in Punjab.
The move to provide relief under property tax is also seen as a conscious decision by the ruling combine to tap urban vote-bank with an eye on the ensuing civic body elections, scheduled to be held in November-December.
This is the second important decision taken by the Akali-BJP alliance to win over the urban voters. The government has already changed the mining policy to make sand and gravel available to the common man at reasonable rates. The Cabinet would also take up another significant issue related to The Punjab Rent Act, 1995. Withdrawal of amended provisions of the Rent Act, which earlier permitted the disputes to be heard by sub-divisional magistrates (SDMs) and tribunals, is also on its agenda for Tuesday meeting.
The cabinet would give its nod to return the powers to decide the cases under the Rent Act to the judiciary. The amendments, brought in the Act nearly a year before, were put on hold by the Punjab and Haryana High Court just about three days before the amended provisions were to be implemented on November 30, 2013, while indicating that executive officers could not take over judicial functions, which were to be performed by judicial officers.
As per the amended provisions, the government had “appointed executive officers as rent authorities or rent controllers and also materially altered the structure of Appellate Courts by setting up Appellate Tribunals in Punjab”. Besides, the Cabinet will also discuss the proposal of bringing down the value-added tax (VAT) on certain products.