MC to levy 7.5% tax on labour quarters, PGs, hostels in Ludhiana

Harshraj Singh
Tribune News Service
Ludhiana, September 2

The Municipal Corporation (MC) will charge 7.5 per cent property tax on the annual rent of properties, including labour quarters, PGs and hostels, under occupation of tenants in the city. The Department of Local Government, Punjab, issued a notification in this regard on August 31.

According to the notification, the rate of tax on non-residential, labour quarters, paying guests (PGs) and hostel buildings under occupation of tenant (s) shall be 7.5 per cent of the annual rent of the said property. This notification shall come into effect from April 1, 2020.

There are thousands of ‘vehras’ in the city, also known as labour quarters, where a large number of migrant workers live. Besides, there are many PGs, hostels and other buildings under occupation of tenants in the city.

The funds-starved MC is expected to collect crores from these properties under occupation of tenants. The MC Superintendent, Vivek Verma, said, “Now, the MC will charge 7.5 per cent tax on the annual rent of properties under occupation of tenants. We appeal to the people concerned to pay their tax for 2020-21 after proper self-assessment. If anyone pays tax on false assessment, 100 per cent penalty will be charged from him/her.”

“The MC has also started a survey to identify such properties. Those who fail to pay tax will be issued notices,” he added.

There are many big vehras with more than 100 rooms in outer wards of the city. The rent of one room at many vehras is generally between Rs1,000 and Rs2,000.

A migrant worker said, “I along with my family live in a vehra as we can’t afford a better accommodation at a lower rent. I pay Rs1,500 for a room in the vehra where there are only six toilets for around 300 people. The burden of tax should not be put on labourers living on rent.”

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