Jammu: Housing and Urban Development Department (HUDD) Principal Secretary H Rajesh Prasad Wednesday stated that the property tax was a “baby step to improve the financial health of J&K municipal bodies” and it was likely to “generate an estimated Rs 150 crore revenue collection in 2023-24.”
Reassuring the new tax formula was devised in a way that it would not burden common people, he cautioned against “misinformation campaign to mislead masses.”
In an informal interaction with the media-persons at Convention Centre, Prasad stated that J&K notified lower rates as compared to neighbouring states and the Union Territories (UTs) and the interest of the poor and other sections of the society would further be taken into consideration.
Elaborating further on this account, he said that under the new tax formula, the residential houses with an area of up to 1000 sq ft would remain exempted from property taxes.
“Similarly residential property with a build up area upto 1500 sq ft will be discounted. This will ensure relief for LIG and MIG category residential houses. Tax rates in UT of J&K are notified in such a way that tax implications are progressive in nature with minimum implication to small businesses and households,” he reiterated.
Prasad said that the property tax was linked with Stamp duty Tax of the area so property valuation of the different areas would be captured differently.
“Property in the Old city area or Sarwal will be subject to lower property tax compared to upscale areas like Gandhi Nagar. Further, weightage to age of property, use type and construction type etc will be taken into consideration to arrive at the Annual Taxable Value in a more comprehensive manner,” he said.
He said, “Small commercial establishments especially shops upto size of 100 sq ft and 200 sq ft have also been provided relief with very minimal tax implications. Most of the shops especially in neighbourhood areas and old markets fall in this category.”
Prasad stated to further ease the common masses, the Act provided a rebate of ten percent for early submission of tax which could be paid in two installments.
Pointing out that it was imperative to levy this tax, HUDD Principal Secretary said that the Government of India and the Finance Commissions set up by it, had been strongly recommending tapping this resource from time to time.
“The Department is able to generate an income of Rs 115 crore against its Rs 850 crore expenditure. This necessitates the imposition of tax to generate revenue for improved municipal services with minimal tax implications for citizens and also as a step towards economically robust ULBs. This is a practice not just in India but across the world. Revenue generated will be used for creating new facilities and improving existing infrastructure by the Municipal bodies. This is going to serve the interests of common masses only,” HUDD Principal Secretary said.
Jammu Municipal Corporation Commissioner Rahul Yadav, Joint Director Directorate of Information and Public Relations (DIPR) Sapna Kotwal too were present in the interaction.