Brig Anil Gupta
Even before the ink could dry on the Government Notification announcing the levy of Property Tax in the urban areas of Jammu & Kashmir (falling under Municipal Councils/Committees), social media was abuzz with comments with many naysayers even predicting the Dooms Day for the Bharatiya Janata Party. Many were competing with each other to build a new narrative to defame the Modi Government terming it as another gift of Naya Kashmir. Unfortunately, the keyboard activists didn’t even bother to read the 16-page Notification issued by the Housing and Urban Development Department which is not only comprehensive but easy to comprehend. The formula given in the Schedule 1 appears to be lengthy and confusing at first sight but it isn’t so. The many variables included in the formula are meant to ensure justice to all. The property tax which will be 5% of the Taxable Annual Value (TAV) for residential properties is probably the lowest among all other regions of the country. The TAV formula caters for the location of the property, type of construction, size of the property and the age of the property. The older the property, the lesser the number of floors, the lesser the built-up area, lesser the tax one has to pay.
The social media enthusiasts were quick to appeal to the sentiments of the people thus attempting to provoke them based on half-baked knowledge and imaginary facts. Many termed it as a burden on the already over-burdened employees and retirees. Surprisingly, among those making noises, many were the officers who had retired at very senior posts and probably had earned enough to build palatial houses in the posh localities. Many were scared as to how they would now justify their benaami properties. The common was sleeping peacefully unaware of what was happening. As far as the political parties were concerned, there was only a single-point agenda of BJP bashing and were visibly happy that they have found another tool to hit the BJP. Some even did not spare the LG and his administration and questioned the validity of their authority to impose taxes, which according to them is the prerogative of the elected government only. These are the same political parties when in power never cared or planned to make the State self-reliant financially and remained dependent on the Central government for even paying salaries to its employees. These are the same politicians who kept employing people under different ill-planned schemes without budgetary provisions as these employments were over and above the approved establishment. The effect of which is being felt today when lakhs of casual labour employees are crying for regularisation. It is the same political set-up that had created an eco-system of systemised non-compliance of various Acts and statutes which were meant only for the Rule Books. The echoes of the same are being heard again today when some Kashmir-based leaders have made statements that we would not allow this Order to be implemented. Probably, they are living in the past least realising that they no more call the shots and the Administration is strong enough to ensure the implementation of its orders.
Why the opposition to the Property Tax is what is bothering me? Why misleading and factually incorrect information is being circulated that has the potential of not only misguiding but also provoking the innocent public? The very concept of local self-government hinges on the principle of self-reliance. Starting from the Panchayat upwards, all are required to generate revenue for the development of the area under their jurisdiction. Do we not want development? How long can we remain dependent on the doles from the Central Government? There are various avenues of resource generation and the levy of property taxes by the municipalities is a world-wide accepted norm. The tax collected by the ULBs will be ploughed back for the development and upgrading of essential services in the areas under their jurisdiction. The ultimate beneficiary is going to be the tax-payer only.
Another ill-informed propaganda is that the rates are too high. Their assessment is not based on the facts but probably on the length of the formula. The following few examples of annual rates of property tax in various localities under JMC should set at rest the fear psychosis being created by the rumour-mongers. While calculating a few assumptions have been made. The property is a double-storey with RCC construction. 70% of the plot area has been assumed as a built-up area. The property is self-occupied for more than 6 months. The Land Value Factor (LVF)has been taken from the Notification issued by DC Jammu dated 31/12/2022 specifying the rates of the immovable property of Jammu District for the Calendar Year-2023.
(a) Gandhi Nagar. It is the costliest locality in Jammu. The Property Tax (PT) for a more than 60-year-old double-storey (DS) house over one Kanal is 5540 per year. PT for a DS house of the same age over 12 Marla is 2445. In other parts of Gandhi Nagar for houses which are 10-20 years younger, the PT will be 7458 for 1 Kanal and 2821 for 12 Marla.
(b) Trikuta Nagar/Channi Himmat. For 1 Kanal 30-40-year DS house PT is 6822. For 10 Marla, PT is 2419. For 7 Marla 20-30-year DS house, it is 1681.
© Shastri Nagar/ Sainik Colony/Nai Basti/Rehari Colony. 1 Kanal 20-30-year-old, PT is 6907. For 12 Marla, PT is 3047.
(d) Greater Kailash/Nanak Nagar/ Bhagwati Nagar/ Bakshi Nagar/Sidhra. PT for a 12 Marla DS house 20-30-year-old, PT is 2710. For 40-50 years old it is 2107, for a 10 Marla more than 60-year-old PT is just 1210 annually. For a 7 Marla, 50-60-year-old DS house, PT will be only 896.
From the above, it is evident that baseless rumours to misguide the public are being spread. Some self-styled well-wishers of the common men even went to the extent of linking the same with the revocation of Article 370, inferring that had 370 been in vogue, the tax could not have been levied. However, they conveniently ignored the fact that under the J&K Urban Immovable Properties Rule 1962, property tax was being paid by the citizens of J&K till as late as 1982. Unfortunately, the Congress at the Centre and NC in the state had joined hands to ruin the economy of the state. Taking advantage of the weak and appeasing policies of the Central Government an environment of non-compliance has been created in the State thus denying the national exchequer the various taxes needed to be paid. Not paying Taxes was part of the narrative of not paying anything to the Indian State. There was no accountability of funds received, and no record was maintained of their utilisation nor any contribution to the national exchequer. Though the times have changed, the mentality has yet not changed. Those who created the eco-system of non-compliance are still active with the same vicious propaganda and are busy misleading the gullible public on the issue of property tax, which the citizens pay the world over. The Administration has been very considerate and sympathetic while formulating the rules for Property Tax, Exemption of property up to 1000 sq ft is an example of the same.
(The author is a Jammu-based veteran, political commentator, and security and strategic analyst.)
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