Punjab Govt to hike collector rates in major cities

The Punjab Government is all set to increase the collector rates for properties in major cities of the state. The revised rates are expected to come into force in the second quarter of the ongoing fiscal.

Since the Aam Aadmi Party has not imposed any new tax since it assumed the reins of power in the state in 2022, it has fallen back on additional resource mobilisation to bridge the gap between revenue receipts and expenditure. This will be the third time since 2022 that the collector rates will be increased.

The exercise is being undertaken to bridge the gap between the market rate and collector rate of properties, thus eliminating the scope of unaccounted or black money being invested in the real estate business. This will also ensure that the cash-strapped state’s registers keep ringing. This year, the state wants to earn Rs 7,000 crore as stamp duty and registration charges.

Last year, the government had fixed a target of collecting Rs 5,750 crore as stamp duty and registration charges. After a substantial increase in collector rates (100 per cent in some parts of Patiala), the total collection of stamp duty and registration charges went up to Rs 6,200 crore in 2024-25.

Talking to The Tribune, Finance Minister Harpal Cheema said the deputy commissioners (DCs) would submit proposals for increase in collector rates to bring these on a par with market rates. There was a huge gap between the two in many areas, he added.

Earlier, the collector rates would be increased by just 5-10 per cent every year by the DCs concerned. That hike was based on independent assessment of property rates in various parts of their respective districts. Since property rates have increased substantially and continue to be on the upswing, a substantial increase in collector rates is imminent.