MC moots 10 per cent hike in property tax on commercial and residential properties

To bring Hallomajra, Kajheri, Palsora, Maloya and Dadumajra within purview of commercial tax.

Written by Hina Rohtaki | Chandigarh | Published:March 20, 2017 7:35 am
Chandigarh, Chandigarh MC meeting, municipal corporation property tax, Chandigarh MC property tax, Chandigarh tax, residential tax Chandigarh, Chandigarh news MC Building in Sector 17. (Express Photo)

THE CHANDIGARH Municipal Corporation has proposed a hike of 10 per cent in the property tax on commercial and residential property in the city. Further, the civic body has also decided to bring the remaining five villages —Hallomajra, Kajheri, Palsora, Maloya and Dadumajra — also within the purview of commercial tax. The agenda would be put up before the General House for its final approval on Monday.

As per the agenda, “The property tax on commercial buildings was imposed with effect from November 22, 2004 and as such a period of 12 years has elapsed and the existing rates have not been revised so far. Apparently, a lot of increase in the rates of commercial properties has been witnessed over the years. However, a nominal increase of only 10 per cent is proposed in the existing rates of 3 per cent with effect from 2017-18.”

The same hike has been proposed for the property tax on residential property or house tax as well. If a house owner is paying a property tax of Rs 600 per annum, it would increase to Rs 660 now after the hike. A person who owns a 10-marla house will now have to shell out Rs 275 annually while one with a two-kanal house will have to pay Rs 1,100.

The agenda even specifies that the existing rebate slabs of 40 per cent, 30 per cent and 20 per cent may be abolished and only 10 per cent rebate would be allowed for two months from April 1 to May 31.

The commercial properties in all the sectors of Chandigarh are divided into different zones and the tax is calculated according to the built-up area with the rate as per the zone. While a booth owner has to pay around Rs 1,800 -Rs 2,000 property tax per annum, owner of a 10-marla plot size (for commercial) pays around Rs 9,500 per annum.

Owner of a two-way showroom in Sector 17 shells out around Rs 35,000 per annum as the property tax.

There are around 23,000 commercial units falling within the MC limits. The assessees are liable to pay property tax under the self-assessment scheme on the prescribed proforma. There are approximately 83,000 residential properties liable to pay property tax as per rules.

Even as the House rejected the agenda of bringing other villages within the purview of property tax, the agenda is again coming up for consideration.

The survey of the villages was conducted and it was found that there are 788 commercial units in Hallomajra, 649 units at Kajheri, 293 units at Palsora, 556 units at Maloya and 576 at Dadumajra. A committee was constituted that had further recommended that the commercial properties of these villages be included in zone C of group IV of the self-assessment scheme.

The agenda specifies that now again they have received a letter from the secretary, local government, on this, which is placed before the House to reconsider the property tax to be levied here in these villages.

The civic body is in the process of carrying out a physical survey of all residential properties as per the latest technology so as to ascertain the actual status and to bring those assesses under the net of tax who are avoiding tax payment and they shall be charged extra rate of 25 per cent along with 12 per cent interest as prescribed in the MC bylaws.

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