The Punjab cabinet has given the go-ahead to amend the Punjab Municipal Act, 1911, and Punjab Municipal Corporation Act, 1976, for providing a major relief to the public in property tax on land and buildings.
The Cabinet also approved to divide all the municipalities of the state in three categories - A, B and C. Category A would further be divided into three sectors and categories B and C would be divided into two sectors.
Religious places, cremation grounds, cattle pens, historical buildings, old age homes and orphanages, among others, would be exempted.
Exemption to widows and the disabled is up to Rs 5,000 and to freedom fighters, BPL families, ex-servicemen (total exemption) and educational institutions is up to 50 per cent.
No tax would be levied on vacant plots and houses constructed on plots measuring 50 square yards (irrespective of storey), single storey residential houses up to 125 square yards and flats up to 500 square feet super covered area. Tax amounting to 7.50 per cent would be levied on total annual rent of non-residential rented buildings.
