Chandigarh, March 16 : The Haryana government on Tuesday said it would not levy property tax on the land used for agriculture in urban areas.
With this, Haryana has become the first state in the country to exclude land used for agriculture only from the purview of tax by making amendments in the property tax laws.
On Monday, the government passed a Bill in the Assembly this regard.
An official spokesperson said under the provisions mentioned in serial number 49 of List-II (State List) of the seventh schedule of the Constitution, state governments have the right to levy property tax on lands and buildings, and do so.
With the amendment, a provision has been made to levy property tax only on the basis of the value of the property and to set a minimum rate for it. However, municipalities will also have the right to levy property tax at a higher rate.
With implementing the reforms in the property tax, the state will get an additional 0.25 per cent of Gross State Domestic Product (GSDP) as a loan.
So far, Rajasthan, Andhra Pradesh, Telangana, Madhya Pradesh, and Manipur by making such amendments, have been recommended to give 0.25 per cent as additional loan by the Union Finance Ministry.
Disclaimer: This story is auto-generated from IANS service.