By Mubashir Bukhari

Srinagar (NVI): Five months after abolition of the special status granted to Jammu and Kashmir under Article 370, the government of the newly-formed Union Territory is all set to impose property tax, reviving a move that was thwarted nearly 9 years back.

An official in Housing and Urban Development department said all central laws are now applicable in Jammu and Kashmir since it has been reorganized as the Union Territory. “Property tax is already being collected from the people in other states and Union territories,” he said.

An official of Srinagar Municipal Corporation (SMC) said a proposal to impose property tax was mooted earlier in 2011 but it could not be taken forward as the Legislative Council of the erstwhile J&K state had rejected a bill in this regard then.

Jammu and Kashmir Legislative Council rejected the bill, though it was passed by Legislative Assembly.

The Legislative Assembly on March 31, 2011 passed the bill seeking imposition of tax on commercial and residential properties falling within municipal limits, amidst uproarious scenes and en masse walk-out by the opposition.

The bills, JK Municipal (Amendment) Act 2000 and JK Municipal Corporation (Amendment) Act 2000, besides a bill to establish a Property Tax Board were passed by voice vote with only members from treasury benches available to consent the passage.

As per the law, 10 percent tax was to be levied on all commercial properties whereas four percent tax was to be imposed on residential properties falling within municipal corporations of Srinagar and Jammu. Lands upto 10 marlas and residential construction thereon were exempted.

In Municipal Committees, only commercial properties were to be charged tax with maximum ceiling of three percent. Commercial properties in Municipal Councils were to be charged upto seven percent while residential properties were to be charged upto a maximum of three percent.

The official said the money generated from the tax would be spent on the development of the city. There are certain parameters including location of the property and type of the structure which will determine the tax slabs, he said.

“Once we collect the tax, we are bound to provide all the facilities to the people like development of roads, lanes, by lanes, pavements, foot paths, street lights, intelligent traffic lights, sanitation, parking area, development of graveyards and waste disposal,” he noted.

Sources said waste disposal and drainage are the major issues being faced by the people in the city. “Srinagar city – with a population of 1.4 million – produces 380 metric tonnes to 450 metric tonnes of solid waste every day,” he said.

Commissioner, Srinagar Municipal Corporation, Khurshid Sanai confirmed that property tax will be imposed in the Srinagar city. “We have to conduct a detailed survey of areas falling in the territorial jurisdiction of SMC and accordingly devise a policy for charging property tax. It will take us two to three months to devise the policy. Later we will assess the tax rates,” he said.