Srinagar: Property tax rates are comparatively low in Jammu and Kashmir and the move is aimed at ensuring better facilities for the people, Kashmir’s Divisional Commissioner, V K Bidhuri, said here on Saturday amidst an uproar over its proposed implementation from April.
Speaking to reporters here, Bidhuri said J&K is the last among the states and UTs where this tax has been enforced.
Bidhuri, who was accompanied by Srinagar Municipal Corporation (SMC) Commissioner, Athar Aamir Khan, said property tax is the main source of revenue for urban local bodies.
“Property tax is the main source of revenue for a municipality. It is a progressive tax and it is not imposed uniformly across the spectrum. Poor people will not have to pay tax like the rich who have more assets,” he said.
The divisional commissioner said the tax is being imposed only in urban areas and not in rural areas.
“Agricultural land is exempted from it. A residential house up to 1000 square feet is exempted. So, one-third of the population in the UT is already exempted. The tax rate is very low as compared to other states/ UTs,” he added.
Bidhuri said the tax has to be paid once annually and the money will get deposited in the account of the municipalities.
The collected amount will be used for the people for ensuring better facilities to them, he added.
Political parties in the UT have demanded roll-back of the government order and asked the administration to put it on hold for a few years in view of the economic situation.
Earlier, the Divisional Commissioner Bidhuri and Commissioner SMC, Athar Aamir Khan along with senior officials from Srinagar Municipal Corporation held a detailed meeting and discussion with the representatives of various trade federations to discuss the proposed property tax within Srinagar Municipal limits.
The meeting was attended by Kashmir Chamber of Commerce & Industry, Kashmir Hoteliers Association, PHD Chamber of Commerce and Industries, KCIF, KTMF, CCIK, Kashmir Economic Alliance and many other trade federations and civil society bodies.
During the meeting, Div Com and Commissioner SMC gave a detailed presentation to all stakeholders about the property tax. The process and method of property tax calculation was discussed with the members present.
It was impressed that the property tax adopted by J&K is a progressive model. The tax to be collected will go into the account of the local bodies only and will be used for the development of the respective city only. The Tax rates are among the lowest in the country, they informed.
The members present calculated the model test cases of commercial as well as residential properties. The tax is to be paid annually not monthly and Residential properties up to 1000 sqft have been exempted from the tax so are the agricultural land as well the religious places.
The tax slabs have been kept in a very progressive manner so that distributive Justice is taken care of.
The members present gave their valuable feedback and sought clarifications on a number of issues related to the collection. The officials present replied to the queries raised.
Meanwhile, the property tax will be effective from 1st April, 2023.
