Hike in property tax will impact biz, public: FICO

The Federation of Industrial & Commercial Organisation (FICO) on Tuesday “strongly opposed” the state government’s plan to revise property tax slabs to match the increased collector rates.

According to a press statement issues here, Gurmeet Singh Kular, president, FICO, said linking property tax with collector rates will put a heavy financial burden on industries, businesses and the common public.

He said industries are already going through a rough patch due to the recession, effects of revised Goods and Services Tax (GST), high costs of raw materials and electricity, and other expenses. Any increase in property tax will make it more difficult for businesses to survive and may affect employment as well, he said.

KK Seth, chairperson, FICO, said collector rates are fixed mainly for property registration and stamp duty, and should not be used to calculate annual property tax.

He added that the move may lead to a sharp increase in tax, especially in major industrial cities like Ludhiana.

FICO requested the state government to discuss the matter with industry representatives before taking any final decision.