Chandigarh, June 1 – In a historical decision, the Haryana Government has decided to do away with the age old system of exemption of municipal taxes on its buildings and establishments so as to inspire the general masses towards payment of property tax besides making Municipal Bodies financially more sound.
A decision to this effect was taken in a meeting regarding property tax held under the Chairmanship of Chief Minister Mr Manohar Lal here today. Urban Local Bodies Minister Mrs Kavita Jain was also present in the meeting. In an another significant decision, it was decided to give freedom to Municipal Corporation and Councils to fix the rates of property tax depending on the area and value of property.
Till now, it was the State Government which fixes the property tax to be levied on the owners. The State Government would henceforth fix only the floor and the ceiling rates of properties. While reviewing the tax structure, the Chief Minister said that municipal bodies should be self sufficient in terms of availability of funds for development. For this, he directed the officers to explore additional possibility for increasing the income of Municipalities other than the grants from the Government.
He also directed the officers of Urban Local Bodies Department to exempt Gaushalas from the payment of taxes. Similarly, the religious institutions like temples, gurudwaras and mosque should also be exempted from the payment of tax provided that these institutions are not being used for any commercial purposes. He also directed the officers to levy minimum property tax on working women hostels in the state. In the meeting, the Chief Minister also directed the officers to prepare a scheme of auto-debit of payment of property and other taxes through banks. He said that the scheme would facilitate the government to automatically debit the payment from the account of beneficiaries on account of various services being provided by different government departments. This, he said, would also help in saving time and money on generation of bill and its payment. The Chief Minister said that initially, this scheme should be started in Government to Government (G2G) mode.
Later on, the scope of the scheme should be further expanded. Principal Secretary to Chief Minister Mr Rajesh Khullar, Additional Principal Secretary to Chief Minister Dr. Rakesh Gupta, OSD to Chief Minister Mr Neeraj Daftuar, Principal Secretary Urban Local Bodies Department Mr Anil Kumar, Director Urban Local Bodies Mr Vikas Gupta and other officers were also present in the meeting.