Higher tax slabs proposed for Solan commercial property

Higher tax slabs proposed for Solan commercial property

2022-04-20 01:34:46


Tribune News Service

Ambika Sharma

Solan, April 19

Commercial property owners will have to shell out more as the Solan municipal corporation (MC) has proposed higher tax slabs for various categories of commercial properties like hotels, bars restaurants, clubs, guest houses, travel agencies, etc.

Date for objections extended

Commissioner, Solan MC, Rajiv Kumar said the by-laws were approved in a special general house of the MC convened on February 23. Objections were sought from the property owners till March 26. This date has now been extended to April 25. Following scrutiny of the objections, these rates would be notified.

The owners of residential properties, including let-out property, have, however, been given relief with sizable reduction in the proposed tax. As against the earlier rate of Rs 4,230 per 100 m for residential properties, the new tax slabs have been slashed to Rs 608 per 100 m and Rs 1,265 per 100 m, respectively, for the residential and let-out residential properties.

Earlier, a flat tax rate of Rs 4,230 per 100 m was applicable for all residential and commercial properties. Various commercial categories have been devised now on the basis of built-up area as well as the business undertaken.

Commissioner MC Solan Rajiv Kumar said the by-laws were approved in a special general house of the MC convened on February 23. Objections were sought from the property owners till March 26. This date has now been extended to April 25. Following scrutiny of the objections, these rates would be notified.

In a bid to enhance its income , hotels above built up area of 2,000 sq m, showrooms, restaurants, industries and factories would now be charged maximum tax of Rs 20,250 per 100 m. Similar properties having built up area between 1,000 and 2,000 sq m and show room above 1,000 sq m would be charged Rs 16,875 per 100 m.

Other commercial buildings like shops, schools, colleges, education hostels, hospitals, theatres, clubs and paying guests have also been brought under the purview of higher tax rate of Rs 11,813 per 100 m. Godowns, dhabas, stalls and other type of properties not covered under the specified properties would be charged Rs 5,063 per 100 m.

The Union Government has made it mandatory to re-devise bylaws of property tax in the Urban Local Bodies (ULBs) using the unit area method by taking into consideration the plinth area of a property. These bylaws would enable a ULB to obtain the Central grant. Tax up to 25 per cent can be imposed for various categories like commercial, domestic, etc, by considering factors like location, structure, age and occupancy of a building.

Enhancing the property tax is a dicey proposition for the MC in the election year. The MC earns a revenue of Rs 47.30 crore annually as property tax. A sizable spurt would be registered in its income with this increase.


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Source by [himachalpradeshtourism.org]

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