[77]

GOVERNMENT OF PUDUCHERRY

LOCAL ADMINISTRATION SECRETARIAT

(G.O. Ms. No. 37/LAS/2018, Puducherry, dated 11th January 2019)

ORDER

The Government of Puducherry has directed the Commissioners of all the

Municipalities to undertake General upward Revision of Property Tax for the

quinquennial period commencing from 01-04-2017 to 31-03-2022 vide G.O Ms.

No. 33/LAS/2017, dated 09-03-2017 of the Local Administration Secretariat,

Puducherry.

2. As per sub-section (2) of section 121 of the Puducherry Municipalities

Act, 1973, the Property Tax shall be levied at the rate not exceeding 30% on the

basis of Annual Rental Value of Buildings. However, in accordance with rule 6 of

the Puducherry Municipalities (Assessment of Annual Rental Value of Buildings/

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La Gazette de L' État de Poudouchéry

The Gazette of Puducherry

PART - I

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EXTRAORDINAIRE

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22 {

No.

10

Poudouchéry

Mardi

22

Janvier

2019 (2 Magha 1940)

No.

Puducherry

Tuesday

22nd

January

2019

LA GAZETTE DE L'ETAT

[PART - I

78

Houses) Rules, 2000, the rate of tax has been restricted to 9% of the Annual Rental

Value of Buildings, which in turn shall be fixed by the Municipal Council with prior

approval of the Government having regard to the location, use and type of

construction of buildings.

3. Therefore, for the quinquennial period 2017-2022 Government has

directed the Local Bodies to enhance the Annual Rental Value of Buildings by

uniform rate of 15% for residential buildings, 25% for commercial/industrial

buildings and 20% for other structures, over the rates pertaining to the last

quinquennial period, 2012-2017 in order to strengthen their financial position, so

that, they could manage to meet the growing additional expenditure towards civic

amenities, payment of salary and pension to their employees as per the

recommendations of the 7th Central Pay Commission and other over-heads.

4. Further, the Government of Puducherry has issued orders withdrawing

the concession of 50% reduction in the Annual Rental Value granted in respect of

owner occupied residential buildings, as hither to allowed vide G.O. Ms. No. 33/

LAS/2017, dated 09-03-2017 of the Local Administration Secretariat, Puducherry.

5. Furthermore, the Government of Puducherry has ordered the

Municipalities to re-classify the Roads/Streets which determine location of buildings

which is one of the factors for fixing the rental value of buildings vide G.O. Ms.

No. 41/LAS/2017, dated 31-03-2017 of the Local Administration Secretariat,

Puducherry.

6. However, it has come to the notice of the Government of Puducherry,

that (i) such upward revision of Annual Rental Value of Buildings, (ii) withdrawal

of concession of 50% reduction granted in the Annual Rental Value in respect of

Owner Occupied Residential Buildings and (iii) re-classification of Roads/Streets

have cumulatively contributed to the enhancement, of rental value of buildings and

resultantly caused much burden to the tax payers. Further, most of the Members of

Legislative Assembly of Puducherry have also expressed much concern on the

financial burden caused to the tax payers due to the hike in Property Tax/ House Tax.

7. Therefore, the Council of Ministers vide Resolution No. 2018/M.35/237,

dated 02-11-2018 has approved the proposal for reduction of Property Tax/ House

Tax fixed for the quinquennial period commencing from 01-04-2017 to 31-03-2022

by 25% in respect of owner occupied residential buildings.

8. Hence, the Government of Puducherry is pleased to order that Property

Tax in respect of Owner Occupied Residential Buildings shall be reduced by 25%

from the existing structure fixed for the quinquennial period commencing from

01-04-2017 to 31-03-2022.

(By order)

GIDDI BALARAM,

Under Secretary to Government (Local Administration).

PART - I]

LA GAZETTE DE L'ETAT

79

GOVERNMENT OF PUDUCHERRY

LOCAL ADMINISTRATION SECRETARIAT

(G.O. Ms. No. 38/LAS/2018, Puducherry, dated 11th January 2019)

ORDER

The Government of Puducherry has directed the Commissioners of all the

Commune Panchayats to undertake General upward Revision of House Tax for the

quinquennial period commencing from 01-04-2017 to 31-03-2022 vide G.O Ms.

No. 34/LAS/2017, dated 09-03-2017 of the Local Administration Secretariat,

Puducherry.

2. As per sub-section (1) of section 127 read with sub-section (4) of

section 130 of the Puducherry Village and Commune Panchayats Act, 1973,

the House Tax shall be levied at the rate not exceeding 16% on the Annual Rental

Value of Buildings. However, in accordance with rule 6 of the Puducherry Village

and Commune Panchayats (Assessment of Annual Rental Value of Buildings/

Houses) Rules, 2000, the rate of tax has been restricted to 9% of the Annual Rental

Value of Buildings which in turn shall be fixed by the Commune Panchayat or Village

Panchayat with prior approval of the Government having regard to the location,

use and type of construction of buildings.

3. Therefore, for the quinquennial period 2017-2022 Government has

directed the Local Bodies to enhance the Annual Rental Value of Buildings by

uniform rate of 15% for residential buildings, 25% for commercial/industrial

buildings and 20% for other structures, over the rates pertaining to the last

quinquennial period, 2012-2017 in order to strengthen their financial position, so

that, they could manage to meet the growing additional expenditure towards civic

amenities, payment of salary and pension to their employees as per the

recommendations of the 7th Central Pay Commission and other over-heads.

4. Further, the Government of Puducherry has issued orders withdrawing

the concession of 50% reduction in the Annual Rental Value granted in respect of

owner occupied residential buildings, as hither to allowed vide G.O. Ms. No. 34/

LAS/2017, dated 09-03-2017 of the Local Administration Secretariat, Puducherry.

5. Furthermore, the Government of Puducherry has ordered the Commune

Panchayats to re-classify the Roads/Streets which determine location of buildings

which is one of the factors for fixing the rental value of buildings vide G.O. Ms.

No. 02/LAS/2017, dated 18-04-2017 of the Local Administration Secretariat,

Puducherry.

6. However, it has come to the notice of the Government of Puducherry,

that (i) such upward revision of Annual Rental Value of Buildings, (ii) withdrawal

of concession of 50% reduction granted in the Annual Rental Value in respect of

Owner Occupied Residential Buildings and (iii) re-classification of Roads/ Streets

have cumulatively contributed to the enhancement of rental value of buildings and

resultantly caused much burden to the tax payers. Further, most of the Members of

Legislative Assembly of Puducherry have also expressed much concern on the

financial burden caused to the tax payers due to the hike in Property Tax/House Tax.

LA GAZETTE DE L'ETAT

[PART - I

80

7. Therefore, the Council of Ministers vide Resolution No. 2018/M.35/237,

dated 02-11-2018 has approved the proposal for reduction of Property Tax/House

Tax fixed for the quinquennial period commencing from 01-04-2017 to 31-03-2022

by 25% in respect of owner occupied residential buildings.

8. Hence, the Government of Puducherry is pleased to order that House

Tax in respect ot Owner Occupied Residential Buildings shall be reduced by 25%

from the existing structure fixed for the quinquennial period commencing from

01-04-2017 to 31-03-2022.

(By order)

GIDDI BALARAM,

Under Secretary to Government (Local Administration).

————

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