Ahmedabad: Property tax relief for offices in factories

Times of India | 2 months ago | 29-09-2022 | 05:41 am

Ahmedabad: Property tax relief for offices in factories

AHMEDABAD: The city civic body has relaxed the rule for calculating property tax for office spaces located within factory premises. Property tax on factories used to be low compared to that on office spaces within the factories. According to the modified rule, owners of factories which have office space up to 1,615 sq ft will pay property tax in the same slab as the rest of the factory premises. However, if the office space is bigger than 1,615 sq ft, the factory owner will have to pay property tax which falls in the office space slab. The decision was taken in the AMC revenue committee's meeting held on Wednesday. "We used to calculate office spaces using Factor 7 which is the office-space parameter for property tax calculation. For factory premises, we used Factor 2 which is the parameter for calculating industrial properties," said Jainik Vakil, the chairman of the AMC's revenue committee. "The Factor 7 tax slab is higher than the Factor 2 tax slab. The owners of many small and medium factories used to default on taxes." Vakil said that the AMC decided to modify the rule and made it more acceptable to the owners of such factories.

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