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No property tax in Haryana on agri land in urban areas

To ensure this, the Manohar Lal Khattar-led Haryana govt passes a Bill in the Assembly

Statesman News Service | Chandigarh |

The Manohar Lal Khattar- led Haryana government has decided not to levy any property tax on the land used for agriculture in urban areas.

For this, the Haryana government on Monday passed a Bill in the Assembly during the ongoing budget session.With this, Haryana has become the first state in the country to exclude land used for agriculture only from the purview of tax by making amendments in the section of the property tax itself, an official spokesperson said.

Giving details in this regard, the spokesperson said that according to the provisions mentioned in serial number 49 of List-II (State List) of the 7th Schedule of the Constitution of India, state governments have the right to levy property tax on lands and buildings.

On the basis of this, property tax is levied on lands and buildings by all the states and accordingly in Haryana property tax is also levied on both buildings and lands.

With the latest amendment made by the Haryana government, a provision has been made to levy property tax only on the basis of the value of the property and to set a minimum rate for property tax.

The municipalities will also have the right to levy property tax at higher rates than these minimum rates. This preface is as per the recommendation of the Union ministry of housing and urban affairs. These recommendations include notifying the floor rate of property tax as per the prevailing circle rates and putting in place a system of periodic increase in property in line with price increase.

As a result of implementing these reforms in property tax, the state will get an additional 0.25 per cent of Gross State Domestic Product (GSDP) as a loan. So far, five states namely Rajasthan, Andhra Pradesh, Telangana, Madhya Pradesh and Manipur by making such amendments have been recommended to give 0.25 per cent as additional loan by the Union ministry of finance.

Meanwhile, Haryana Chief Minister Manohar Lal Khattar said the Full and Final Settlement Scheme, started from 3 March, 2021, for the enhancement in the sectors of the Haryana Shehri Vikas Pradhikaran will continue till 30 April 2021.

So far, a benefit of Rs 31.10 crore has been given to 762 plot holders under the Scheme, while till now Rs 19.74 crore has been deposited by the plot holders. The CM gave this information in the Assembly on Tuesday.

The CM said under this Scheme 15,430 plot holders will be given an enhancement settlement of Rs 823 crore, under which people will get benefits upto 20 to 80 per cent.

Khattar said this problem has been going on ever since the Haryana Shehri Vikas Pradhikaran came into existence and this issue came to the notice of the present state government in 2017, after it came to power in 2014.