Partial waving off property tax, electricity bill and motor vehicle tax for individuals and others are part of the Gujarat government’s Gujarat Aatmanirbhar package worth Rs 14,000 crore announced on Thursday. The package is aimed at helping individuals, industries and businesses recover from the pandemic related lockdown and its impact.
In all the partial waiver of taxes amounts to Rs 2,300 crore.
The announcements are a result of the recommendations made by the Economic Advisory Group (EAG) , headed by former finance secretary Hasmukh Adhia that was set up by the state government to suggest how to help revive the economy in the state. The EAC had recently given its first interim report to the government.
Among the tax waivers that have been announced is the 20% relief in property tax to commercial entities for the year 2020-21. The relief worth Rs 600 crore is expected to benefit 23 lakh commercial establishments.
Residential owners in urban areas have been given a 10% discount if property taxes are paid before July 31, 2020. This relief amounts to Rs 144 crore and will benefit 72 lakh property owners.
The state also announced a relief of Rs 650 crore for residential power consumers using less than 200 units of power in a month. Such consumers will get a one time relief of not paying for 100 units of power.
The government has also provided a relief of Rs 200 crore by forgoing fixed charges on electricity for May for 33 lakh commercial consumers with Low Tension (LT) connections. High Tension (HT) consumers, meanwhile, can pay the fixed charges in four equal installments between September and December, 2020.
Electricity duty has been reduced by 5% for three months of June, July and August for small entrepreneurs and shop owners. This is likely to provide Rs80 crore worth benefits to 30 lakh people.
A Rs 221 crore relief has been announced for over 63,000 private bus owners, taxis and jeeps in the state as the government has decided to forego road tax for six months between April and September, 2020.