MC asks state to clear fundamentals

LUDHIANA: In order to increase its revenue generation, the municipal corporation (MC) is not averse to the idea of imposing property tax on the city residents but has asked the state government to do the groundworks before imposing it.
Sources said the principal secretary of the local bodies department had in a meeting attended by MC commissioner AK Sinha, mayor Hakam Singh Giaspura and department officers across the state sought their opinion for imposing tax on the residents to increase the civic body’s revenue generation.Sinha and Giaspura asked the officers to take stock of the entire situation. He would then discuss the suggestions and convey it to the state government.
Meanwhile, sources revealed that though the MC is mulling over the proposal, it wants the state government to clear the fundamentals of imposing the tax so that no problem reared its head in future. Sources further said the civic body would raise the matter with the department in the meeting to be held soon. It would implement the tax only after getting the clarifications.
Confirming the development, additional commissioner Kanwalpreet Kaur Brar said they were open to the idea but would take a final decision after discussing the matter with the state government.
Pertinently, the state government had proposed that the tax would be levied on self-assessment basis. The tax payers would himself assess his property and reach the MC office on a monthly or annual basis to pay the tax, failing which he could be charged 11 times his due amount.
Tax on vacant plots
At present, the state is not collecting any tax from the houses used for residential purposes and the vacant plots. But it has levied 15% of Annual Rental Value (AVR) on the structures used for commercial purposes. But according to the new proposal, the tax would be levied on vacant plots also on the basis of cost of land.