Property tax rates more in smaller cities
Ahmedabad- If you are living in one the smaller cities of Gujarat, then be prepared to pay more property tax than cities like Ahmedabad or Surat.
Now owning a home in larger urban centres of Gujarat will be cheaper than any property in smaller townships of Gujarat which is less populated and have comparatively less economic activities.
The Municipal Corporations of the respective areas across the state have increased their property tax by 30 percent to 60 percent. But for smaller cities who will be paying more taxes, this variance is yet not resolved.
The standing committees of Ahmedabad and Vadodara have declared hike in property tax by 60 percent and 50 percent respectively in their revised budget 2013-14. In Ahmedabad, a 27 percent hike in commercial property tax rates has been accepted (proposed 45 percent ).
Jamnagar recorded the highest proposal of hike in residential property tax rates while Junagarh recorded the highest proposal of hike in commercial property tax rates in the state. It is because, these cities are facing lack of resources.
For example, the civic body of Junagarh has not paid salary to their employees from past four months. Moreover, the tax recovery is very low due increasing number of tax defaulters in the city.
According to the carpet area based property tax formula, a person living in Jamnagar pays Rs 4,058 for a self owned 1,000 square feet apartment in a posh area which is under 10 years of age. While for the same apartment, a person living in Jamnagar will have to pay Rs 6,200 as per the old taxation assessment formula. It will be Rs 2,040 in Surat and Rs 2,734 in Ahmedabad.
Rajkot is the only single city in Gujarat where properties are being assessed by old taxation assessment formula. As per a senior Rajkot municipal corporation official, the new carpet area based property tax assessment lacks political support. He added that this new method will ensure transparent activities.
Officials of Surat Corporation believe that a tax recovery rate will help to keep the tax rates low. He stated that around 95 percent of property tax has been recovered which in turn kept the tax rates low.
On the other hand, urban development department pointed out the responsibility of each municipal corporation to make arrangements for its own revenue sources.
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