In a major relief to the industry in Punjab, the state government has decided to create a separate property tax slab for it, excluding it from the commercial and residential class.
Under the new formula, the owners of each unit will pay only 1.5% property tax on the plot's collector's rate of 75%. Disclosing this here on Wednesday, local bodies minister Anil Joshi said the measure would minimise the industrialists' tax problems. "The industrialists' proposals were discussed with deputy chief minister Sukhbir Singh Badal, who then approved this formula to resolve the issues," the minister said.
He pointed out that before the decision, state Bharatiya Janata Party (BJP) president Kamal Sharma, industry minister Madan Mohan Mittal, and he had detailed discussion in Amritsar recently with traders and industrialists. Explaining the amended decision, he said that if the commercial collector's rate of Rs 10,000 per square yard is levied on an industrial unit, then only 1.5% would be charged as property tax on 75% (Rs 7,500 per sq yd). If the property tax had been paid already, then the excess amount would be refunded or adjusted in the next year's tax, he added.