After a lot of hue and cry over the issue of imposing property tax in Punjab, the State Government on Friday decided to have different rates for small and big civic bodies.
The State Government is of the view that municipal corporations and the committees cannot be held at par with each other, and the rates of property tax should vary. The decision is in complete variance with the recommendation of the Committee headed by BJP MlA Som Parkash to suggest a formula to levy property tax. The Committee, in its report had recommended that there should be uniform rates across the state and should not vary city to city.Sources informed that all the corporations will now have same rates. 50 paise will be charged per square feet on the covered area.
On the vacant plot, 50 paise per yard will be charged. For the floors above the covered area, the tax will be charged at the same rate.For instance, if the floor above the covered area of 500 yards is covering 250 yards, the tax will be charged for the 500 yards for the ground floor, and for 250 yards for the first floor.
The agenda for bringing about changes in the property tax was expected to be placed before the Cabinet during its Friday meeting.
But, it was not tabled after all; and the officials concerned were asked to prepare a fresh agenda after incorporating the changes. As per the new formula, no property tax would be charged on residential properties measuring up to 150 yards.
The formula is in sync with the BJP proposal for the imposition tax on residential properties that are measuring more than 150 yards, at the rate of 25 paise per square feet on the covered area and Re one per yard on the uncovered area.
Earlier, the tax was to be imposed on the value-based system, and th state was divided in eight zones for the purpose. In each zone, the prices of properties would be fixed by the Deputy Commissioners and other authorities concerned.
As per the earlier proposal, the property tax was to be Rs 50 per annum on the houses measuring 50 yards, and Rs 150 per annum on the houses measuring 100 yards.
On houses measuring above 100 yards and other buildings and properties, it could be charged on unit area basis.
The nod to the Property Tax comes despite the “initial” opposition by the ruling Shiromani Akali Dal’s coalition partner, the Bharatiya Janata Party (BJP), which has all along been apprehending a backlash of sorts in the urban areas of Punjab during the 2014 parliamentary polls.
The decision comes at a time when the Congress has been training its guns at the ruling combine on the issue.