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The Gujarat government has fixed the annual house tax at INR 200 for all rural homes built under PMAY-Gramin and similar housing assistance schemes. This tax rate, which will remain unchanged for the next four years, aims to protect economically weaker households from arbitrary increases by local Gram Panchayats. The policy was formally notified by the Panchayat, Rural Housing, and Rural Development Department and is part of Chief Minister Bhupendra Patel's broader push for structured rural governance and affordability. Officials plan to reassess the tax structure after the four-year period, based on its ground-level impact.
The Gujarat government has introduced a uniform annual house tax of INR 200 for beneficiaries of the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) and other government-assisted housing programmes. The decision, which has already come into effect, ensures that no Gram Panchayat across the state can charge more than this fixed amount for the next four years. Advertisement
This limit applies to thousands of housing units constructed under schemes meant to offer pucca houses to the rural poor. The initiative stems from concerns that local governing bodies were levying inconsistent or excessive house taxes, adding an undue financial burden on families that had only recently achieved basic housing stability. The new rule standardises the tax and eliminates discretion at the village level, ensuring fairness in rural taxation.
The resolution was officially issued by the Panchayat, Rural Housing, and Rural Development Department, and reflects Chief Minister Bhupendra Patel's focus on supporting rural welfare through clear and enforceable policy. According to senior officials, the decision will not only benefit PMAY-Gramin recipients but also those covered under other similar state-run schemes.
The INR 200 tax effectively translates to less than INR 17 per month, allowing beneficiaries to retain more of their limited income for essentials like food, education, and health. This affordability safeguard comes at a time when rural families are still recovering from economic shocks and coping with rising living costs.
With this tax cap in place, these homeowners will not face any revision until the end of the four-year cycle, at which point the state government will undertake a review to assess the policy's success and sustainability.
The Gujarat government has also invested efforts in improving implementation of PMAY-G over recent years. In addition to facilitating construction support and phased payouts of up to INR 120,000 per household, the administration has conducted digital surveys to ensure fair beneficiary identification. The house tax cap now adds a protective financial layer, reinforcing the intent behind PMAY-G to make housing not only accessible but also affordable over time.
This development positions Gujarat among the first states to enforce a binding upper limit on rural house taxation for government-backed homes. While some other states have proposed flexible rates based on Panchayat decisions, Gujarat's flat rate aims to reduce variability and uncertainty, particularly for households still dependent on subsidised schemes.
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