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Ludhiana MC hikes property tax, owners to shell out to 7.5% of annual rent
Earlier, owners had to pay Rs 5 per yard for the property annually.
The municipal corporation has enhanced the property rates for rentals, paying guest (PG) accommodations, hostels etc in Ludhiana to 7.5% of the annual rent received by the owners.
Earlier, owners had to pay Rs 5 per yard for the property annually.
The new rates have been approved by the local bodies department and these will be applicable from April 1, 2020. Residents can avail 10% rebate on the tax for the financial year 2020-21.
As per MC officials, there are over 50,000 rental properties in the city, including residential rental properties, PGs and labour quarters.
When contacted, property tax superintendent Vivek Verma said, “The property tax will now be collected on the basis of annual rent. If the owner of a 200-yard building is collecting an annual rent of Rs 1 lakh, then he will have to pay Rs 7,500 as tax. Until now, the tax for such a property was Rs 1,000. The revised rates would be applicable from April 1, 2020.”
Residents oppose move
Facing financial crisis amid the pandemic, residents are not happy with the MC’s decision to hike the tax. Damanjot Singh, a resident of Model Town area, said, “Middle class families are already struggling to make ends meet and now, the MC has increased the property tax. Even the tenants are struggling with the payments. This will just add to everyone’s troubles. The government should spare a thought for the common man before taking such decisions.”
Resolution for increasing tax was passed in 2018
Until 2013, residents had to pay a house tax of 9% of the annual rent, however, after the introduction of property tax in 2013-14, the rate was reduced to 3%. In 2014-15, the rate was again revised and Rs 5 per yard was being charged from the rental residential properties. Later in 2018, the MC General House approved a resolution to increase the tax.
