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No proposal for property tax: FM
KT NEWS SERVICE. Dated: 7/21/2012 1:01:03 AM
SRINAGAR, JUL 20: Finance Minister Abdul Rahim Rather said the State Government has no proposal to come up with legislation to impose property tax.
“I was present in the planning commission meeting along with the Chief Minister Omar Abdullah. I think nothing that sort has happened. If I correctly remember I think the issue did not come up for discussion,” the Minister said talking to reporters on Thursday on the sidelines of presidential polls here.
On Friday last Chief Minister Omar Abdullah reportedly told the Planning Commission that his government would try to build a political consensus in the next assembly session over the issue of imposition of property tax.
Rather, however, insisted that there is no such proposal.
In fact, the Minister said, State Government has passed a bill in 1999 abolishing property tax.
“I was then Finance Minister and I realised that people were facing lot of difficulties due to the property tax. We came up with legislation and abolished it,” the Minister said.
Rather said he has no knowledge whether Ministry of Housing and Urban Development has any such proposal. “But I am sure that at present we do not have any such proposal and the issue did not come up during the meeting the Planning Commission,” he said.
In 2011 State Legislative Assembly passed two bills aimed at amending J&K Municipal Act 2000 and J&K Municipal Corporation Act 2000 and establishing a Property Tax Board in the state.
As per the legislation, 10 percent tax had to be levied on all commercial properties, 4 percent tax on residential properties falling within the Municipal Corporations of Srinagar and Jammu. However, land up to 10 marlas and residential construction was exempted from tax. In Municipal Committees only commercial properties were charged tax with maximum ceiling up to 3 percent. The commercial properties in Municipal Councils were charged upto 7 percent while residential properties up to maximum of 3 percent.
However, both the bills were referred to joint select committee of the Legislative Assembly and the Legislative Council after the move was opposed by the separatists and traders.