New taxes leave res­i­dents fum­ing

An­nounce­ment of prop­erty tax, hike in lux­ury tax do not go down well

HT Ludhiana Live - - Front Page - Deepak Beri ludlivedesk@hin­dus­tan­ LUD­HI­ANA:

An­nounce­ment of new taxes by the state gov­ern­ment hasn't gone down well with the com­mon man.

Many feel that the in­creased VAT and lux­ury and prop­erty taxes, would burn a hole in their pocket and put fur­ther fi­nan­cial li­a­bil­i­ties on them.

The prop­erty tax, in par­tic­u­lar, hasn't come as good news to many. “Since the an­nounce­ment of prop­erty tax by the gov­ern­ment, peo­ple are in a panic mode. I have been re­ceiv­ing end­less calls re­gard­ing pay­ment of prop­erty tax,” Ra­jiv K Sharma, a city-based char­tered ac­coun­tant, said.

“As per avail­able in­for­ma­tion, the prop­erty tax would be around 1% of the gross value of land and the cost of con­struc­tion. So I think a per­son hav­ing 200 yard home will have to bear an ad­di­tional burden of Rs 20-30 thou­sand per an­num,” he added.

The most con­cerned are the ones who have their houses big­ger than 100 yards, as they fall un­der the cat­e­gory wherein they will have to pay prop­erty tax in terms of the land value.

Ram Ku­mar, a city res­i­dent, fumed over the new tax regime, say­ing, “The tax rate is un­bear­able. It should not be ap­pli­ca­ble on those houses that are oc­cu­pied by the own­ers and where no com­mer­cial ac­tiv­ity is go­ing on.”

Av­tar Singh Malhotra, an­other res­i­dent, seemed more con­cerned with the pres­sure it will put on his house­hold bud­get. “The new prop­erty tax is un­ac­cept­able, it will put im­mense burden on the com­mon man who is also al­ready bear­ing the brunt of in­fla­tion.”

Be­sides, the ho­tel in­dus­try is also ru­ing the in­crease in luxu- ry tax on ho­tels from 4% to 8%. Amar­veer Singh, sec­re­tary, Ho­tels and Restau­rants' As­so­ci­a­tion, said, “The oc­cu­pancy rate in ho­tels is al­ready around 32% and af­ter the in­creased tax it will fur­ther go down to 20%. We in Pun­jab pay the high­est lux­ury tax which is levied on rooms start­ing from Rs 200 on­wards, which is un­fair.”

Un­happy with the de­vel­op­ment, the traders are plan­ning to hold a state-level meet­ing soon. Mo­hin­der Ag­gar­wal, sec- re­tary, Pun­jab Pardesh Beopar Mans­dal, said, “The VAT on elec­tron­ics goods has reached 14.3%, which is very high as com­pared to neigh­bor­ing states. Even in Delhi it is 5.5%. We are go­ing to hold a meet­ing over the is­sue.”

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.