Gurugram : The Progressive Federation of Trade and Industry (PFTI) has urged the Haryana Government to review the new property tax regime applicable to industrial and commercial properties in Gurugram and immediately stop the recovery of the increased tax.
PFTI Chairman Deepak Maini has written to Haryana Chief Minister Nayab Singh Saini, stating that the new system is imposing an additional financial burden on industries and businesses. He urged the government to take an early and favourable decision in the interest of the industrial sector.
Maini said the new tax system introduced by the Municipal Corporation of Gurugram (MCG) for industrial and commercial properties uses a complex statistical methodology for determining property tax. He said the system has made it difficult for taxpayers to accurately calculate their tax liabilities.
According to Maini, the property tax system should be simple, transparent and easy to understand, enabling businesses to determine and pay their taxes without unnecessary complications.
Concerns Over Rising Business Costs
The PFTI Chairman said the multi-fold increase in property tax would raise operating costs for industries and could have an impact on business activity, new investments and employment generation.
He pointed out that Gurugram is one of India’s major industrial and commercial hubs and cautioned that any policy that increases the cost of doing business in the city could have a wider impact on the industrial sector.
Maini also raised concerns over the use of different collector rates across areas for determining property tax. He said this could result in significant variations in the tax imposed on similar properties located in neighbouring areas, creating a sense of inequality among businesses.
He stressed that the basis for taxation should be clear, uniform and easily understandable for taxpayers.
Demand to Restore Simpler Tax System
PFTI has urged the government to immediately halt the recovery of the increased property tax imposed under the new policy and consider restoring the earlier simpler and more transparent system.
Maini said that if an increase in revenue is necessary, the government could consider a limited and practical revision based on the earlier system, rather than implementing a complex framework that places a disproportionate burden on businesses.
Industry Consultation Sought
Maini also called for a high-level consultation with industry and trade associations before the new policy is finalised. He said the views and concerns of stakeholders should be taken into consideration while framing the final property tax regime.
Expressing confidence in Chief Minister Nayab Singh Saini’s industry-friendly approach, Maini said he hoped the government would take a positive decision at the earliest.
He said providing relief to industries would not only address the concerns of businesses in Gurugram but also help further strengthen Haryana’s image as an attractive destination for investment and industrial growth.