Govt to go for major changes in Property Tax Bill

Excelsior Correspondent
JAMMU, Feb 12: The proposed legislation for imposition of Property Tax in Jammu and Kashmir for the first time was all set to witness major changes before the Joint Select Committee (JSC) sent it back to the Legislative Assembly for passing. The Government was of the view that the legislation, in its present form, would exempt majority of householders from the ambit of Tax.
Official sources told the Excelsior that though the JSC hasn’t held even a single meeting during past over 10 months when it was constituted after the Property Tax and Property Board legislations were blocked in the Legislative Council during last budget session of the Legislature.
Deputy Chief Minister Tara Chand, who headed two JSCs of 15 members each in his capacity as Housing and Urban Development Minister earlier, had recently been replaced by his successor and Cabinet colleague Nawang Rigzin Jora by Upper House Chairman Amrit Malhotra.
Each JSC (one on Property Tax and another on Property Board) has 15 members each—five from the Legislative Council and 10 from the Legislative Assembly. Both the JSCs were constituted in April last year after the legislations pertaining to levy of Property Tax across the State and constitution of Property Board (to collect the tax) were blocked by the Elders for the second successive year.
Sources said there were some lacunaes in the bill like exemption of residential buildings up to 7 marlas in the City from the ambit of Property Tax. This would mean that majority of houses in the City would be out of the purview of Property Tax barring some posh localities like Gandhi Nagar, Trikuta Nagar or Greater Kailash.
Sources said the Housing and Urban Development Department was of the view that this clause needed a serious review before introduction of the bill in the Legislature again after the JSC meeting to expand the Tax net.
“There were some more clauses in the bill, which would need a thorough review subject to approval of the JSC before which the legislation was pending’’, sources said.
However, the problem before the Government was that the JSC hasn’t met even a once during past 10 months while budget session of the Legislature was to start within a fortnight.
“Even if the JSCs hold one or two meetings before the Assembly session, the consensus was unlikely to be evolved among 30 members, which would mean that the bill would have to wait till the next session, which would be held in Srinagar, the summer capital of the State, in September-October this year’’, sources said.
It may be mentioned here that the Government had, for the first time, introduced the bills for imposition of Property Tax and constitution of Property Board in budget session of the Legislature in March 2011. However, the Legislative Council members had blocked the bill and wanted it to be referred to the Select Committee. As the Committee was not constituted, the bill lapsed.
The bill was introduced afresh in the Assembly during budget session in March last year. Again, the Assembly passed it but the Council wanted it to be referred to the JSC. In April, the Council Chairman had constituted the JSC but it never met till date to deliberate on the two legislations.
Council Secretariat sources said they had sent repeated reminders to the Housing and Urban Development Department in the past few months for convening meeting of the JSCs but it was not called.