June 15, 2007
In an attempt to reduce corruption and eliminate “inspector raj”, the Punjab state government today announced that the property owners in Punjab shall now self-assess their property tax and pay the government. State minister Manoranjan Kalia said that they will rationalize taxes and that the property owners shall assess an annual rental value themselves. This is also an attempt to maximize revenues generated by the government with the elimination of a third party, the tax inspectors. Prior to this the inspectors used to siphon off at least half of the property tax meant for the government. The date for payment under the new scheme has been extended till July 10.
Punjab follows suit of other states like Karnataka, Andhra Pradesh, Delhi and others. The self-assessment system of calculating property tax is an efficient and transparent way of payment of taxes. In this scheme launched by the states, an annual rental value is calculated under the Unit Area Method System on covered space or vacant land of property. The tax is payable by the land owner and not by the renter or lessee as the cases may be. Exemption from property tax is allowed under the regulations of the individual municipal corporations of states.
Non-payment of property tax calls for pecuniary action against the defaulter under the state corporation acts.