Saturday 18 March 2017

Ahmedabad civic body to probe property tax discrepancies

The finance department has fished out at least eight instances where the tax department has been charging less by reducing the value of the factor in the carpet area based property tax formula.


AHMEDABAD: The property tax department of the civic body has been asked to explain as to why certain type of properties in the city pay less tax when compared to similar properties located within the same locality.

The finance department has fished out at least eight instances where the tax department has been charging less by reducing the value of the factor in the carpet area based property tax formula.

For instance, in case of some schools, the factor multiplied into the formula was just 1 instead of 2. This way the tax was literally halved for such schools. Similar was the case of auto garages. In case of auto parts shops while the factor multiple decided was 6, the 
AMC tax department multiplied a factor of just 2 for some of the favoured lot causing a drastic reduction in the tax.

For laboratories, while the factor multiple was 7 the AMC multiple factors like 1 in few cases, 2 in other and in some cases it was 6. In case of open air theatres, while the AMC’s standing committee had decided on a factor multiple of 6, the tax department had been charging tax from based on a factor of 2.

“We are preparing a detailed list of such properties where factor multiples have been drastically reduced. There may be more such cases to probe,” said a senior AMC official.




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