Property tax a progressive model for people’s welfare: Div Com Kashmir
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Property tax a progressive model for people’s welfare: Div Com Kashmir

“Property tax can’t be transferred to Central, State Govts”

Post by Irfan Yattoo on Sunday, February 26, 2023

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Srinagar, Feb 25: Divisional Commissioner Kashmir, V K Bidhurisaid,  on Saturday,  that the government of Jammu and Kashmir is imposing a property tax in order to provide better facilities for the people, and that the money raised will be used to develop the relevant areas.

Addressing a joint press conference in Srinagar, Bidhuri, who was accompanied by SMC Commissioner Athar Aamir Khan, stated that the  property tax implemented by UT is a progressive model and that J&K is the last state and UT where this tax has been enforced

"Tax collected will go directly into the account of the local bodies only. It will be used for the development of the respective city in Jammu and Srinagar and the local municipal bodies,” he said.

Bidhuri said the tax slabs that have been imposed in J&K are among the lowest in the country.

The Divisional Commissioner clarified that residential house up to 1,000 square feet is exempted from the tax. “Both agricultural land and religious places have also been exempted from it,” he said.

"Tax is being imposed only in urban areas and not in rural areas. 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 be deposited in the account of the municipalities. “The collected amount will be used for the people for ensuring better facilities to them,” he said

Bidhuri said the tax slabs have been kept in a very progressive manner so that distributive justice is taken care of.

He further stated that there was no option other than imposing property tax, which would be acceptable to the people, for ensuring better facilities to them.

“This will help in ensuring better services and facilities to the people as the tax cannot be transferred to the Central or State Government and used for developmental purposes only," he said.The Divisional Commissioner said 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.

In the presser, Srinagar Municipal Corporation (SMC) Commissioner, Athar Aamir Khan said property tax is progressive and has been devised keeping in view the social and economic aspects.

“The rates imposed are very nominal compared to other Municipal Corporations of the country and with special exemptions for poor and marginalized, there is nothing to worry about this tax,” he said.

Khan said that the tax would be collected from people from April and will be used to provide better facilities to people at their doorsteps.

“The current revenue generation of SMC Srinagar is just 10 percent when compared to its requirements. Taxes will help in ensuring better services and facilities to the people as tax cannot be transferred to the Central or State Government and used for developmental purposes only,” he said.

On 21 February, the Jammu and Kashmir administration ordered the imposition of property tax for the first time in the erstwhile state. The tax rates will be 5 percent of the taxable annual value (TAV) for residential properties and 6 percent for commercial properties.