Impose house tax, UT tells civic body

Rajinder Nagarkoti

Tribune News Service

Chandigarh, July 3

The UT Administration has once again told the Municipal Corporation to impose house tax on city residents. The tax will be imposed on the residents under the Smart City Mission.

For the current financial year (2015-16) and the previous financial year (2014-15), no notification was issued for house tax on residential property. In July 2013, the UT Administration had notified the imposition of house tax in the city. However, it was only for 2013-14. The tax on residential property was imposed at the rate of Re 1 per sq yd per annum, only for 2013-14.

Houses measuring less than 125 sq yards, those under the EWS or LIG categories and in villages falling within the limits of the Municipal Corporation were exempted from paying the tax.

Thereafter, the UT Administration sent a proposal to the MC to revise the tax rate for 2014-15. In October last year, the general house of the MC had rejected the agenda of the rate revision. Since then, the UT Administration has not notified the house tax rate.

At a recent meeting between officials of the UT Administration and the MC, UT officials conveyed to the civic body that under the Smart City Mission, they needed to impose house tax on residential property. The UT officials asked the MC officials to calculate the rate of house tax, sources said.

MC panel had prepared report to hike tax

A special committee of MC officials had even prepared a report to increase the existing rates of house tax by 20 times. However, the report was never submitted before the MC general house meeting. In its recent report, the Fourth Delhi Finance Commission had also pulled up the UT Administration and the MC for their failure to revise the house tax rates.