Srinagar– The Union Territory administration is mulling to impose property tax in the urban local bodies (ULBs) of Jammu and Kashmir from April this year, sources privy to the development told Kashmir Observer.
According to sources from the Housing and Urban Development Department (HUDD), serious deliberations are presently going on and a formal notification is expected to be issued in the coming week.
It will be for the first time that such a proposal will be framed where the residents have to pay property tax on residential and commercial establishments.
Pertinently, J&K was the only state in the country which was exempted from property tax. However, post abrogation of Article 370, the central laws were extended to the newly created UT and all the laws became applicable automatically.
It may be noted that in October 2020, the Ministry of Home Affairs (MHA) empowered the J&K administration to impose property taxes through the municipal corporations, municipal councils and municipal committees in the Union Territory. However, the move was strongly opposed by the regional political parties prompting the J&K government to keep the proposal on hold.
In an order, Union Home Secretary Ajay Kumar Bhalla issued several amendments in the Jammu and Kashmir Municipal Act, 2000 and Jammu and Kashmir Municipal Corporation Act, 2000 carried through the Jammu and Kashmir Reorganization (Adaptation of State Laws) Order, 2020.
The National Conference and the People Democratic Party (PDP) were earlier up in arms about the Centre’s decision. Following the controversy, LG Manoj Sinha stated that the government will not levy any property tax in the Union Territory.
“Speculations are rife that property tax will be levied from people of Jammu and Kashmir. I am assuring you in clear terms that no such tax would be levied in J&K by the UT administration”, he told reporters in Baramulla.
However, sources said the government has finally decided to go ahead with the policy and that a proper SRO will be issued shortly.
“There are a number of centrally sponsored schemes that are meant for states and UTs, however they aren’t applicable to those regions where the property tax is not collected. So the government has decided to impose the Act now,” said an official, wishing not to be named.
He said that the tax of residential and commercial properties will be different which will be decided by the government in the SRO.
“Of course the tax on commercial building will be high than residential building,” he said, adding “The officials from the revenue department will decide after evaluating the rates of the land and the property of the area,”
He further said that the Government will be imposing property tax through urban local bodies (Municipal Corporation, Committees) in their respective areas across Union Territory.
Principal Secretary, Housing and Urban Development Department, Dheeraj Gupta did not respond to repeated calls from the reporter.
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