LUDHIANA: Following the announcement of a 5% increase in property tax, civic officials are fielding numerous inquiries from residents regarding potential new tax payments.
The state government’s notification specifies that the revised rate will take effect from April 1. However, officials from the Municipal Corporation (MC) clarified that this increase has been in place since 2021 and is already being collected.
This recent notification stems from a letter issued in 2021, allowing the state government to access additional borrowing from the central government under various schemes. The local bodies department’s letter indicates that, for ULBs (Urban Local Bodies) to qualify for increased borrowing limits and funding, property tax floor rates must correspond with current circle rates and be adjusted for price increases.
The changes were communicated through letters dated February 14 and April 26, 2021, declaring a 5% annual tax increase, subject to reviews every three years based on updated collector rates, starting in 2021-22.
This property tax adjustment will apply to a range of properties, including residential homes, flats, commercial buildings (excluding multiplexes, malls, and wedding venues), industrial buildings, and community facilities.
As a result, the government has enacted a 5% property tax increase for the 2025-26 fiscal year, effective April 1, 2025, applicable across municipal corporations, councils, and nagar panchayats in Punjab.
Officials maintain that adjustments to property tax have been made in line with directives. The Ludhiana MC operates an online portal that collects 35% to 40% of payments electronically. MC Superintendent Vivek Verma stated, “Each financial year concludes on March 31, triggering an automatic 5% increase in property rates on our portal. If any ULB has not implemented the increase, they will proceed now.”
No Need for Residents to Worry: Residents who have already paid their property taxes will not be required to pay again.
According to previous notifications issued on February 14 and April 26, 2021, property tax rates will be raised by 5% annually, with a triennial review to adjust based on new collector rates, becoming effective in the 2021-22 fiscal year.
The revised rates cover various properties utilized for public purposes including residential buildings, commercial spaces, and community facilities.
The government plans to implement a 5% property tax increase for the 2025-26 fiscal year, effective April 1, 2025, across various local bodies in Punjab. Officials from the Ludhiana MC confirm they are following these directives and enhancing the rate as necessary.
Verma reassured residents that those who have already settled their property taxes do not need to make additional payments.
