Property Tax decision yields results: JMC gets Rs 100 cr from GoI

JAMMU, July 12: The decision of the Jammu and Kashmir Union Territory (UT) administration to impose property tax has started to show positive outcomes, as the Jammu Municipal Corporation (JMC) becomes the first Urban Local Body (ULB) in the UT to receive the initial installment of over Rs 100 crores from the Government of India (GoI). These funds are allocated specifically for the implementation of property tax.
“We have received the first installment of over Rs 100 crores from the central government for the imposition of property tax,” Baldev Singh Billoria, Deputy Mayor of JMC, informed Rising Kashmir.
He further added, “We anticipate receiving additional central funds once we submit our plan and requisition.”
The central government grants more than Rs 400 crores to ULBs, subject to the imposition of property tax. In compliance with this requirement, the JMC formally requested central funds from the GoI, accompanied by a detailed plan outlining their utilization.
After careful consideration of the JMC’s request, the GoI disbursed approximately Rs 110 crores to the JMC. “We have allocated Rs 75 lakhs to each of the 75 wards within the JMC’s jurisdiction,” Deputy Mayor Billoria stated when questioned about the utilization of the funds provided by the GoI after the implementation of property tax.
Although property tax was scheduled to be levied in Jammu and Kashmir from April 1, the authorities have encountered delays in finalizing the software/application through which individuals can file their property tax. Addressing this concern, the Deputy Mayor stated, “We have informed the central government that the notification has been issued, and the ULBs in Jammu and Kashmir will commence levying property tax.”
As a result of this communication, “the GoI released approximately Rs 110 crores for the JMC, which the ULBs are entitled to upon the imposition of property tax.”
It is anticipated that further funds from the GoI, totaling over Rs 400 crores, will be released soon upon the submission of requisitions and plans by the ULBs in the Jammu and Kashmir UT.
Effective April 1, 2023, all residents of Jammu and Kashmir residing in municipal areas are obligated to pay property tax at a rate of 5 percent and 6 percent of the Taxable Annual Value (TAV) for residential and non-residential properties, respectively.
The Jammu and Kashmir administration aims to collect an estimated annual property tax revenue of around Rs 150 crores.