Amid a growing scandal and to generate more revenue, Ludhiana’s municipal corporation has decided to re-evaluate its house tax levied on hotels and restaurants in its city.
This has come about amid allegations of preferential treatment by the Ludhiana municial corporation to hotels and restaurants in it precincts.
Time of India’s Ludhiana edition reported yesterday that city councillors have been raising the issue of levying house tax from the major hospitality businesses with municipality officials who have been ignoring their demands.
A scandal recently was brought to light when municipality officials were discovered charging small amounts as house tax from local hotels and restaurants by making assessments based on very low rates.
Congress councillor Sushil Kumar Raju Thapar, a member of the municipality’s house tax committee said officials had deliberately kept the tax charge low at Rs4 per sq. ft. which was not in proportion with how much Ludhiana hotels and restaurants earned.
Thapar stated that tax must be assessed again in such cases to help the city out of its financial crunch. The civic body’s top brass now intends to tighten its tax grip on hotels and restaurants by reassessing what they should pay.
