Tax rebate for repair of property to come down from 15 pc to 10 pc
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The civic administration has proposed to discontinue with the 42-year-old practice of giving 15 per cent rebate to residential and commercial property owners for repair of their properties and make it 10 per cent as per the state government rule.
In a proposal tabled before the Legal Committee, the civic administration said the PMC had taken a decision long back to increase the rebate on annual ratable value of property tax from 10 to 15 per cent for repair of property. "The decision was taken in the backdrop of floods in the city after the collapse of Panshet dam. The decision was implemented in 1971," it said.
PMC officials said the PMC had sent the decision of the civic body to the state government for approval but it was not approved till date and still the civic administration was implementing it. "The state Assessor and Collector has objected to its implementation and sought certain clarification on it while demanding to follow the state government taxation rule that restricts the rebate to 10 per cent which is applicable across the state," he said, adding that the PMC was the only civic body in the state that had increased the rebate for repair of property from 10 to 15 per cent.
With the state government directives, the civic administration has urged the legal committee to cancel the existing decision of increasing the rebate from 10 per cent to 15 per cent on annual ratable value of property tax and allow them to make bills considering 10 per cent rebate for repair for existing properties. Also, the administration has demanded that they be allowed to implement the 10 per cent rebate for properties that would be coming in the tax net.
The state assessor and collector has recently communicated to PMC that scrutiny of the assessment files carried out by them for 2006-07 to 2010-11 revealed that while arriving out at annual ratable value, the PMC deducted 15 per cent allowances for repairs instead of 10 per cent as mentioned in the Taxation rules under chapter VIII of BPMC Act which resulted in short levy of property tax to the extent of Rs 111.38 core.