Rates Will Be 5% Of TAV For ‘Residential’ Properties, 6% For ‘Commercial’
Jammu/Srinagar: Administration ordered on Tuesday the imposition of property tax in municipal areas of Jammu and Kashmir from April 1.
The tax rates will be five per cent of taxable annual value (TAV) for residential properties and six per cent for commercial properties, it stated.
“In exercise of the power conferred by section 71A of the Jammu and Kashmir Municipal Act 2000, the government hereby notifies the rules for levy, assessment and collection of property tax in the municipalities and municipal councils of the Union Territory,” Housing and Urban Development Department Principal Secretary H Rajesh Prasad said in a notification.
The National Conference demanded immediate rollback of the notification, saying it smacks of arbitrariness.
NC spokesperson Imran Nabi Dar said the people of Jammu and Kashmir “have been at the receiving end economically since 2019” due to the losses suffered because of the restrictions imposed from August 5 that year and subsequent COVID-19-induced lockdowns.
“Imposition of the property tax will further push the people to the wall. Such decisions will make the situation even worse…. Such matters should be left to an elected government,” he said.
“Unfortunately such important issues don’t face public scrutiny in the current bureaucratic setup. It has become a habit of those in power in Delhi to issue orders, irrespective of their impact or public opinion,” he said and termed this decision anti-people and a grave injustice.
In October 2020, the Ministry of Home Affairs (MHA) empowered the Jammu and Kashmir administration to impose the property tax after an amendment to the J&K Municipal Act, 2000 and J&K Municipal Corporation Act, 2000 through the J&K Reorganisation (Adaption of State Laws) order, 2020.
According to the amendments, property tax shall be levied on all lands and buildings or vacant lands within municipal limits.
Earlier, most of the political parties, traders and civil society groups in Jammu and Kashmir had opposed any imposition of property tax.
Following criticism, the administration had earlier dropped the plan of imposing property tax.
According to the notification, rules for Jammu and Kashmir Property Tax Act 2000 were notified to facilitate the imposition of property tax across municipal areas in the Union Territory.
It may be recalled that the government decision has been communicated to Principal Secretary of Housing and Urban Development Department by J&K Chief Secretary through official memo in January 13 this year.
The Administrative Council approved the proposal with the direction that the proposed property tax, which will take effect on April 1 2023, shall be levied at half of the proposed formula.
As per the rules of notification, a person liable to the property tax shall be liable to furnish to the officer authorised in this behalf particulars of property and tax due by May 30 financial year. Second installment of tax shall be furnished by November 30 along with proof of receipt of first installment.
In case of failure to pay tax, penalty of Rs 100 or one per cent will be imposed, it said, adding the maximum penalty shall not exceed Rs 1,000.
There is a provision for inspection, assessment and reassessment in the Act. There is a provision for appeal to be made to the director of local bodies until the board in this direction is set up, it said.