Govt mulls major relief in property tax

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TNS

Chandigarh,October 3
The Hooda Government is set to give a major relief to the owners of commercial and residential property in property tax.

The Haryana Cabinet will approve tomorrow the recommendations of a high-powered committee headed by Parliamentary Affairs Minister Randeep Singh Surjewala on property tax.

Official sources informed The Tribune that the earlier formula of calculating the property tax on the basis of the collector’s rate for residential property above 250 square yards and commercial property would be done away with.The high rate of property tax in major cities, including Gurgaon, Faridabad and Panchkula, had agitated the people, forcing the government to form a high-powered committee to rationalize the property tax.

The sources said the property tax now would be based on the size of residential and commercial property.A slab system is set to be adopted for the property tax on industrial and commercial establishments.

Certain sections and institutions, including religious properties, orphanages, alm houses, municipal buildings, cremation/burial grounds, residential buildings up to 250 square yards owned by ex-servicemen or families of deceased soldiers, ex-servicemen and ex-central paramilitary force personnel would be given a 100 per cent rebate in the property tax

In June last year, the government had imposed a notional property tax of Re 1 per square yard for houses up to 250 square yards and flats up to 500 square feet. The self-occupied houses were, however, given 50% concession.

However, the linking of the property tax of bigger houses and commercial buildings with the collector’s rate was resented.

The property tax was scrapped in 2010 by the Congress government. As a consequence, the Central Government stopped the release of central grants. Even the 13th Finance Commission had termed the abolition as a “wrong” step and against constitutional provisions.

The Hooda Government was forced to impose the property tax to get central grants amounting to over Rs 750 crore, particularly under the Jawaharlal Nehru National Urban Renewal Mission (JNNRUM).

Slab system likely

Property tax based on collector’s rate may go

A slab system based on size of property may stage a comeback

Imposition of tax to bring central grants totalling over Rs 750 crore

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