In offing: Property tax on basis of collector rates, water metering reforms

With state government in talks with the World Bank over 24x7 surface water project in the city, the latter has asked the Ludhiana MC to bring the property tax and water metering reforms in the city. 

Now, MC officials are deliberating the imposition of capital-based property tax wherein it would be calculated on the basis of collector rates of the area and the covered area of the property. 

The new system is likely to increase the property tax, but the officials in the civic body said it would be equitable and residents will have to pay the tax on the basis of collector rates of their area. 

Presently, the MC is charging fixed property tax for posh area, commercial areas and outer areas of the city at ₹6, ₹5 and ₹4 per ft, respectively. Residents living in nearby areas, but with different collector rates of the properties, have to pay the same tax.

As per civic body officials, under the capital-based system, the tax would be calculated on the basis of the collector rates and the built-up area of the property. 

The World Bank team has also proposed implementation of water metering system in the city to stop wastage and impose charges as per the usage. The MC is currently charging fixed amount as water/sewer charges that ranges from ₹200 to ₹700 per month depending on the size and category of the building.

The water metering policy is hanging fire for years now and after its implementation, the exemption given to residential properties with area less than 125 yards would also end. 

Punjab municipal infrastructure development company (PMIDC) chief executive officer (CEO) Ajoy Sharma said the World Bank has asked the MC to bring certain reforms so that revenue could be increased for sustaining the infrastructure, which would be developed under 24x7 surface-based water supply project. 

“Through these proposals, equitable property tax would be imposed and water wastage will be minimised. The MC would also improve the infrastructure and facilities, and the residents will have to pay the tax for the same. However, nothing has been finalised yet and the final decision would be taken by the MC’s general house only,” Sharma added.