Haryana levies property tax two years after scrapping it

Haryana on Friday decided to levy tax on residential and commercial properties,including vacant plots,after scrapping it two years ago.

Written by Express News Service | Chandigarh | Published: June 2, 2012 3:19 am

Haryana on Friday decided to levy tax on residential and commercial properties,including vacant plots,after scrapping it two years ago. The state cabinet decided to levy only Re 1 per square yard on residential properties up to 250 square yard and flat size up to 500 square feet while concession of up to 50 per cent will be given on self occupied properties of plot size of more than 250 square yard.

Talking to reporters after a cabinet meeting,Chief Minister Bhupinder Singh Hooda said,“It has been decided to levy a nominal amount of Re 1 per sq yard on the residential properties upto 250 sq yards,which constitute more than 82 per cent of the total residential properties in the state …these property owners will only pay a maximum of Rs 250 depending upon the size of the property.”

Earlier,the state government had scrapped the property tax in 2010 and as a result of which,several central grants were stopped by the Centre.

He said the property tax assessment formula has been revised so as to give big relief to the residential,industrial,institutional property owners and also to rationalise the property tax on commercial properties.

“With this step the state government on the one hand has given relief to its residents in the tax liability and on the other ensured that the flow of grants to its towns from Centre are not held up,” Hooda said.

A hundred per cent rebate from property tax has been given to several properties like religious properties,orphanages,alm houses,Municipal Buildings,cremation and burial grounds.

Residential buildings up to 250 square yards owned by ex-servicemen or families of deceased soldiers. No property tax would be levied on a vacant plot of more than one acre and above used for agriculture or horticulture purposes,Hooda said,adding that the license fee for residential plotted,group housing and industrial colonies would be increased. Conversion charges for hotel,motel with banquet facility and resorts projects have also been hiked. A

The government has also decided to levy fire tax,the collection of which will be utilised for strengthening of fire services in the state. It will be charged at 10 per cent of property tax on all non- residential properties.

Hooda said the state has comprehensively revised its minor mineral concession rules with the formulation of “Haryana Minor Mineral Concession,Stocking and Transportation of Minerals,and Prevention of Illegal Mining Rules,2012”. The state has been facing serious problems regarding availability of construction material on account of the mining operations virtually lying closed in the state since March.

The Supreme Court had directed all the states to revise their Minor Mineral Concession Rules keeping in view the guidelines issued by the Ministry of Mines,and the Ministry of Environment and Forests within a period of six months vide its orders dated February 27,2012.

The cabinet also decided to reduce VAT on Bitumen Emulsion and Crumb Rubber Modified Bitumen (CRMB) from 12.5 per cent to 5 per cent. It also approved to reduce the VAT on Surgical Operation Theatre Tables and Surgical Operation Theatre Lights from 12.5 per cent to 5 per cent. It also approved to write off the arrears of Sales Tax which have become irrecoverable.

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