Property tax is a yearly tax charged to property owners by the local government or the municipal corporation. Property here refers to all tangible real estate that can be owned by individuals. This includes houses, buildings, offices, and premises rented out to other people. Thus, when an individual holds a property, he or she will have to pay tax for the same on an annual basis to the government. In Ahmedabad, property owners pay all property-related taxes through the city’s Municipal Corporation.

Property tax is calculated on the basis of the carpet area of the property and four factors, namely location, age, type of building/use of the property and occupancy.

For Non Residential property, the rate is Rs. 28/- per sq. meter. This tax becomes double for rental properties.

General Tax = Carpet Area (sq. mts.) x Rate x F1 x F2 x F3 x F4

F1
Location Factor
F2
Age Factor
F3
Usage Factor
F4                                                                                                                  Occupancy Factor

 

Respected

Smt. Bijalben Patel

Shree Vijay Nehra

Amdavad Municipal Corporation

As we all know that these are difficult times when Covid-19 has disrupted our lives and thus to fight it, we need to stay indoors to stay safe. Thus the Government has rightly imposed a lock down to keep us from harms way. 

The lock down had been imposed from March 23, 2020 and is still expected to be in place up to at least 2nd-3rd week of May, 2020.

Saying this, however, this has affected us economically as our businesses are practically shut down and there are no operations. The money cycle has stopped which has led to a liquidity crunch in our hands. 

This is the time that we need to brace ourselves for a great depression type recession as businesses will take at least 6 months to recover even after the operations are resumed. 

There are recurring monthly expenses in this period of lock down  (for eg. salaries, interest on loans) which cannot be waived off entirely and thus we need to fulfil those to keep the business alive.

This calls for a time that we as businesses and organisations need support from our Government. As offices are closed because of lockdown and thus inaccessible, we therefore request the municipal corporation to waive off our obligation to pay property taxes on commercial properties for the months of April & May 2020 or till the time when lock down persists.

This would not directly help us gain our revenues back, however would aid us and be a relief in managing our working capital and would assist us in getting our businesses back on track.

2020 has been a year with mostly downs rather than ups and we need this support to survive this year. 

It is therefore requested that we are given this temporary but much needed relief.

Thank you for your time

Yours faithfully

A resident of Ahmedabad