Punjab News/Only 1.5 percent to be charged on 75% of collector rates for calculating property tax in Punjab

Chandigarh, November 27, 2013: Giving a major relief to the industry in Punjab, the state government has decided to create a separate slab for calculating property tax thereby excluded the existing industrial units from present commercial and residential taxes. Under the new formula only 1.5 percent property tax would be charged on the prevailing commercial collector rate of 75% from the industrial plot owners.

Disclosing this here today, Anil Joshi, Local Government Minister, Punjab said that this measure would minimise the problems being faced by the industrialists regarding the property tax and other taxes.  He added that with a view to solving their problems he along with the president of BJP Kamal Sharma and Industry Minister Madan Mohan Mittal held detailed meeting with the traders and industrialists at Amritsar.

He added that the proposals put forward by the industrialists were discussed with the Deputy Chief Minister Sukhbir Singh Badal who had approved this formula to resolve the issues. The Minister informed that contented industrialists have expressed their gratitude to the Deputy CM on whose initiative this major decision of considering industry separately from the commercial and residential property taxes.

Joshi asserted that this decision has offered a massive respite to the Punjab industry. Explaining further, he said that if commercial collector rate of Rs.10,000 per sq. yds have been levied on the industrial unit then only 1.5% would be charged as property tax on 75% i.e. Rs. 7,500 per sq. yds. He said that if the property tax had already been paid then the excess amount would be refunded or be adjusted in the next year’s tax.

Adding further, Joshi said that earlier industry was being considered in commercial category for calculating property tax. He clarified that as per the new decision, only 1.5% would be charged as against the 3% of the commercial rates.