Special exemptions and alternative bases of property tax

The rates of property tax fixed by the council may be proportionate to the value of each building or land or may advance in systematic progression with the value of the building or land, but shall in no case decrease as the value of the building or land increases. When a progressive rate has been adopted by the council, it shall prescribe the principles of classification (as that a certain sum which shall be tax free shall be deducted from the assessment of each building or land or that the progression shall be from a certain percentage in the lowest to a certain percentage in the highest class) and the precise number and limits of each class: Provided that-

1. (a) the council, may with the sanction of Government, exempt any local area, from the whole or a portion of such tax on the ground that such area is not deriving any or the full benefit from the water-supply and drainage or from the lighting system;
2. (b) in the case of any land which is not appurtenant to any building or which is occupied by or appurtenant to huts, the commissioner may assess the land or premises, as the case may be, with reference to extent in lieu of annual value and at such rates as he may himself determine subject to the maximum of rupees twenty-four for each ground of land, measuring thirty-six square metres.