Get ready to pay 10% more commercial property tax from this fiscal as the UT administrator has approved the hike, seven months after the municipal corporation House approved it.
Confirming it, UT local bodies secretary Anurag Agarwal said administrator VP Singh Badnore recently gave his nod to the resolution passed by the MC House in August last year.
“It will be notified soon, after which the MC can impose new rates,” said Agarwal.
MC earning to go up ₹4 crore
MC additional commissioner Anil Kumar Garg, who heads the tax branch, said the hike will help the civic body fetch additional ₹4-crore revenue annually.
“In 2017-18, our total tax collection was ₹42 crore, out of which ₹32 crore was collected through commercial tax and remaining through house tax,” he said.
{{/usCountry}}“In 2017-18, our total tax collection was ₹42 crore, out of which ₹32 crore was collected through commercial tax and remaining through house tax,” he said.
{{/usCountry}}Second hike in 10 years
In Chandigarh, property tax is imposed on commercial buildings and showrooms besides industrial and institutional land.
The MC had introduced the tax in 2004, which was revised in 2007.
While the rates were to be revised every five years, these was no revision till the MC approved 10% hike on August 30 last year.
However, traders are not happy with the move.
Chandigarh Beopar Mandal adviser Kamaljit Singh Panchhi called the hike arbitrary.
“When we are already burdened with so many taxes, including GST, the hike in property tax is not welcome. We strongly oppose the move,” he said.
Advance tax notices within week
MC had put on hold distribution of advance property tax notices for 2018-19 due to the pending approval for the hike.
Garg said the MC will send the notices in a week’s time. He said main focus will be on recovering arrears.
“Last year, demand notices were sent to over 9,000 defaulters to clear their property tax dues. As a result, several institutions, including the Post Graduate Institute of Medical Education and Research, cleared their dues,” said Garg.