The state government’s proposed move to offer a 10% rebate on those who have defaulted on paying property tax is causing a heartburn among those who paid the levy on time.
Punjab local bodies minister Brahm Mohindra is expected to announce the rebate soon. Taxpayers are of the view that if the state government had to announce a rebate even for those paying the tax late, they could also have paid the tax on their whim and fancy.
The proposed rebate has also brought tax collection to a standstill as property owners are now waiting for a notification. The minister is also expected to do away with penalty and interest on property tax for defaulters. A source in the MC said the notification had been sent for the legal opinion and would be issued shortly.
Sarabha Nagar resident Rahul Verma said he always paid property tax and other dues before deadline, considering it to be his “duty”. “But it is discouraging to see the government give a chance to defaulters who did not pay pending house tax even before 2013-14 and had property tax pending since 2013,” he said, adding that would encourage people not to pay their taxes in time.
Civil Lines resident Shubham Sharma, who is a shopkeeper, said the rebate move would bring to an end any fear that defaulting taxpayers had about the authorities. “The 10% rebate is fine, but the move to waive interest and penalty is not justified,” he added.
An MC officer, who did not wish to be named, said the rebate move would also affect their working. “Earlier, we were imposing a 20% penalty and charging them 18% interest for default in payment. From next year, we don’t how we will enforce the tax,” added the officer.
MC superintendent Vivek Verma said they were waiting for a notification from the local bodies department. “We will know the exact concession made by the government only after the notification is issued,” he said.
The MC is yet to collect about Rs 27 crore from property tax defaulters of previous years. The practice is that taxpayers get a 10% rebate for paying the levy by September end. They don’t have to pay anything extra between October and December. There is a 10% penalty for those who pay the tax between January and Marchonstr 20. From March 21, all taxpayers have to pay a penalty of 20% on the tax and an 18% annual interest on the amount.
