Lucknow, July 15 -- The Uttar Pradesh government has proposed a major property tax relief for the state's micro and small enterprises (MSEs) by bringing them under the same property tax category as residential buildings.

Draft Rules Propose Lower Property Tax For MSEs

The state has issued the draft Uttar Pradesh Municipal Corporation (Property Tax) (Fifth Amendment) Rules, 2026, inviting objections and suggestions from the public and stakeholders within 30 days.

Under the proposed amendment, micro and small industrial units, as defined by the state's Industrial Development Department, will no longer be taxed at commercial rates, which are currently three times higher than residential property tax.

The move is expected to reduce the ta...