Sanjeev K Sharma
JAMMU, Feb 22: The Government of Jammu and Kashmir today said the Property Tax may improve Municipal services besides assuring the residents of the Union Territory (UT) that lower rates shall be imposed in comparison to other States and UTs of the country with residential houses up to 1000 sq. ft to be exempted from this Tax.
In a press conference here today, Principal Secretary J&K Housing and Urban Development Department, H. Rajesh Prasad said, one of the essential pillars of Municipal financing across the world is Property Tax and the Government of India along with the Finance Commission have been strongly recommending tapping this resource from time to time.
“Accordingly, the Government of J&K has notified the Property Tax with the aim to improve financial health of Municipal bodies to enable them to provide better Municipal services,” he further said.
He claimed that this new Property Tax policy will help Municipal bodies to generate revenue for better services with minimum Tax implication to the residents.
“Better Municipal services are expected to attract more investment and encourage more people to set up businesses in J&K. Revenue generated from Property Tax will be used to improve infrastructure, build new parks and playgrounds and maintain the already existing facilities which will significantly enhance the services provided by Municipal bodies,” he further said.
Prasad said that Tax rates in J&K are notified in such a way that Tax implications are progressive in nature with minimum implication to small businesses and households.
“Further, as Property Tax is being imposed for the first time in J&K, the UT has notified lower Property Tax as compared to neighbouring States/UTs,” he maintained adding: “J&K is one of the last UTs of the country where Property Tax was not imposed till date.”
The Principal Secretary told reporters that Property Tax is linked with Stamp Duty Tax of the area so property valuation of different areas is captured differently with property in old city areas like in Sarwal to be subjected for lower Property Tax as compared to upscale areas like Gandhi Nagar.
He said that further weightage to age of property, use type and construction type etc shall be used to arrive on annual taxable value in a more comprehensive manner.
“Under new Tax formula, residential houses with an area of up to 1000 sq. ft will be exempted from Property Tax and residential property with builtup area up to 1500 sq. ft are also discounted ensuring relief for Low Income and Middle Income Group category residential houses,” he continued.
Prasad said that Tax rates for other kind of residential properties are also kept on lower side viz-a-viz neighbouring States/UTs.
He said: “Similarly, small commercial establishments especially shops up to size of 100 sq. ft and 200 sq. ft are also provided relief with very minimal Tax implications.”
The Principal Secretary informed: “As Property Tax is to be levied annually and can be paid in two equal installments, it will not be burdening common citizens.” He quoted the Act to say that 10 per cent rebate can be availed by early submission of Property Tax.
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