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Home TOP NEWS

Tax, Trauma, Tribulation: SMC to contest move; pol parties resent the move

Majid Kapra by Majid Kapra
February 23, 2023
in TOP NEWS
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J&K govt to impose property tax from April this year
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Srinagar, Feb 22: The decision of the UT government to levy property tax has created panic in Kashmir as people, suffering a huge economic meltdown since 2019 are wondering how they could pay more while earning a little.

Following the Union Government’s decision of scrapping Article 370 and dividing the erstwhile Jammu and Kashmir state into two Union Territories on August 05, 2019, the economic activities in the region came to a halt. Whatever was left, was consumed by the COVID-19 pandemic. Net result – economy just collapsed.

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And in this backdrop, the property tax has come as a bolt from the blue.

As Srinagar Municipal Corporation has decided to contest government’s move to impose property tax, the move has evoked sharp reactions from political parties here who targeted the Lieutenant Governor administration terming the move as “anti-people” and “undemocratic”.

Junaid Azim Mattu, Mayor SMC, Srinagar said that the decision is violative of municipal empowerment.

“Imposition of Property Tax in J&K is ironically violative of municipal empowerment as this has neither been deliberated upon, nor approved by elected ULBs.”

“While SMC will explore ways to contest this arbitrary move, I am writing to the Hon’ble LG seeking a withdrawal of the SO,” Mattu tweeted.

Meanwhile, while National Conference (NC) termed the decision of levying property tax ‘uncalled for’, Peoples Conference (PC) said the concept of tax per se is not bad, but it’s not the appropriate time for such a decision, when people of Jammu and Kashmir face an economic breakdown.

Echoing similar views, Peoples Democratic Party (PDP) said the decision to levy property tax was taken at a time when J&K’s economy is in ‘doldrums’.

“They issue back to back orders and we watch them silently; what a slave nation can do; their orders don’t bother people anymore,” NC president and former chief minister, Dr Farooq Abdullah told reporters in response to a query regarding the government’s order of levying property tax in J&K.

However, NC spokesperson Tanvir Sadiq said the imposition of property tax in current circumstances was an “anti-people” move.

“These ‘arbitrary’ and ‘anti-people’ orders are not the right way to go ahead. Such decisions are best left to an elected government,” Sadiq was quoted as saying by PTI.

“The economic condition of the people of J&K is not good. Right from 2019, the condition has gone from bad to worse. Such a decision is to be taken by an elected government, not by bureaucrats.  Elsewhere in the country, such taxes are to be passed by the general council of Municipal bodies. This tax has not been brought to the Municipality General Council,” he said.

Peoples Democratic Party (PDP) president Mehbooba Mufti charged that the imposition of property tax in Jammu and Kashmir was part of the BJP’s larger agenda of impoverishing the people of the union territory.

“The real aim is to make people of Jammu and Kashmir so poor that they don’t demand anything. Look at the rest of the country, 80 crore people are getting free ration. They don’t ask for jobs or cheaper fuel. They just wait for the five kg grain so that they can feed their kids. They want to bring J&K also to the same level. This is part of a larger agenda to bury people of J&K,” she told reporters at the PDP office.

People just have to refuse to pay the tax peacefully, she added.

The Jammu and Kashmir administration on Tuesday issued a notification for imposition of property tax in the union territory which will come into effect from the next financial year.

The PDP president said the economy and development indices of Jammu and Kashmir were better than some of the states in the country.

“They could not bring other states at par with J&K, now they are trying to bring us at par with other states,” he added.

Reacting to the government’s order of levying property tax in J&K, Peoples Conference chairman, Sajad Gani Lone said the decision was taken when economy is literally committing a suicide in the Union territory.

“Property tax in aftermath of—-an (Sic) year lost post 2019, couple of years lost in Covid is— seems determination to turn every stone that can be turned to ensure economic euthanasia.”

“Governments have pumped billions world wide to bump start ailing economies. In wonderment,” Sajad Lone tweeted.

He said the situation in J&K for the last three to four years remained crippled in terms of economy, especially after the Center’s August 05, 2019 decision of scrapping the special constitutional position of the newly carved out Union Territory.

He said the COVID-19 pandemic also had a negative impact on the economy of J&K as normal life resumed in the UT after almost two years of lockdown.

“I would like to repeat that people of J&K are not against property tax, economic reality is that tax has to be levied as governments run on tax money. Time is not appropriate, let the government take this decision after four or five years, but not now as the situation is not conducive for such decisions,” he said.

He also added “…leave some decision for the upcoming elected government in J&K!”

“You have to give the economy time to breathe; there is no point in making such decisions, other countries offered millions in economic packages for their people, they announced tax waivers,” added Lone.

NC’s Provincial president for Jammu, Ratan Lal Gupta termed the imposition of property tax as ‘Jazia’ on the common people to not only make them poor but also make their lives miserable.

Gupta said the people of Jammu and Kashmir are feeling betrayed by the abrogation of Art 370 as the situation has turned from bad to worse now.

“Every section of the society stands adversely affected by the anti-people policies of the BJP government,” he asserted.

Senior CPI(M) leader Mohamamd Yousuf Tarigami termed the levying of property tax as “arbitrary and undemocratic” and said the process of collecting taxes and deciding their values is the sole prerogative of an elected government.

The levying of property tax in the absence of an elected government is unconstitutional, he said, adding even the elected municipal bodies were not consulted before taking the decision.

Tarigami said the most objectionable part of the notification is the decision of deciding the values from the centre.

“These are the towns and cities to decide the values and not the centre, as mandated by the 74th Constitutional Amendment. The notification is ultra vires to the constitutional mandate. The locking period of three years is also arbitrary,” he said.

The CPI(M) leader demanded the immediate withdrawal of the notification.

The J&K administration ordering the imposition of property tax in municipal areas of Jammu and Kashmir will come into effect from April 01, 2023, with tax rates being five percent of Taxable Annual Value (TAV) for residential properties and six percent for commercial properties.

However, residential houses up to a built-up area of 1,000 square feet have been exempted from the purview of property tax while smaller assets have been taxed at very lower rates.

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Majid Kapra

Majid Kapra

majidkapra@gmail.com

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