Ahead of the Lok Sabha polls, the Haryana government has announced a major relief in the payments of property tax in the municipalities of the state.

Chief minister Bhupinder Singh Hooda, while presiding over the state Cabinet meeting, on Wednesday announced one time rebate of 30 per cent for those property owners who clear all their dues or arrears upto year 2012-13 by March 31, 2014.

However, mobile phones costing above Rs 10,000 would be more expensive, with the cabinet deciding to increase VAT to 8 per cent from 5 per cent at present.

The government has also announced a rebate of ten per cent admissible to those assesses who pay their total tax for the assessment year by July 31 of that assessment year, a statement said.

For the year 2013-14, the concession of ten per cent would be admissible to those assesses who deposit their dues by March 31, 2014.

Hooda said that 100 per cent rebate would be given till March 31, 2016 to properties situated in 'Lal Dora' (land which is part of the village habitation) of those villages, which have come in the limits of the municipalities on or after April 1, 2010.

The chief minister also announced 50 per cent cut on property tax on petrol pumps. Similarly, 50 per cent rebate in commercial space rate has also been given to IT park, cyber city or parks of all municipalities.

The flats constructed over an area of 2,000 square feet would also get 50 per cent cut in property tax. This will benefit about 80 per cent flat owners in the state.

The Cabinet also approved to reduce the VAT rates on scientific instruments under the Haryana Value Added Tax Act, 2003.

The scientific instrument industry of Ambala has been demanding for the reduction of the VAT on equipments to 5 per cent from 12.5 per cent at present.