Srinagar- The Jammu and Kashmir administration has put on hold the imposition of property tax on residential houses and commercial establishments, within the municipal areas, much to the relief of the people of the Union Territory.
Principal Secretary, J&K Housing and Urban Development Department (HUDD) Prashant Goyal told Kashmir Observer that the decision to postpone imposition of property tax has been taken as the government wants to “work more” on the issue.
“For time being, it has been postponed. We will work more on this issue since the public has many apprehensions about the government’s move,” he said.
In February this year, the J&K administration had notified the imposition of property tax in municipal areas from April 1. The tax rates were fixed five per cent of taxable annual value for residential properties and six per cent for commercial properties.
The government order, however, exempted all the properties owned by Central and UT Government from payment of property tax. Only service charge at the rate 3% of the taxable annual value has to be paid to the Municipality in respect of such properties.
Similarly, all the properties of the Municipality and all places of worship, including temples, mosques, gurdwaras, churches, shrines, etc and cremation and burial grounds were exempted from payment of property tax.
Pertinently, the 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.
Meanwhile, the announcement to postpone imposition of property tax has brought much sought relief to the common masses.
“This is indeed a welcome step. Our business isn’t doing well because of back-to-back lockdowns. Even now the market is down,” said Bilal Ahmad Mir, a shopkeeper from Karan Nagar area of Srinagar.
Echoing similar views, Syed Shakeel Qalandar, former FCIK President asked the UT administration to take civil society on board while framing such laws in future.
“This is indeed a welcome step. Government needs to see whether people can afford such a tax because of their current financial position” he added.
In May this year, the Jammu and Kashmir and Ladakh High had issued notices to the Union of India and the Govt of Jammu and Kashmir in a plea challenging the constitutionality of imposition of Property Tax in the UT.
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.
According to the reports, the decision is also seen as a step in the wake of urban local bodies’ (ULB) polls expected this year and Lok Sabha elections scheduled next year. The tax was supposed to come into force from September 30.
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