MC’s stand may come in way of ‘smart’ status for city

Rajinder Nagarkoti

Tribune News Service

Chandigarh, July 6

While the UT Administration has conveyed to the Municipal Corporation to impose house tax under the Smart City Mission, the stand of the MC not to impose house tax is likely to affect the chances of Chandigarh being declared a smart city.

As the house tax issue was once again discussed by officials of the UT Administration and the MC in the wake of the Smart City Mission, city Mayor Poonam Sharma said as and when they would receive an official communication, the matter would be discussed in the coming MC House meeting. The UT Administration has to send all documents pertaining to the Smart City Mission to the Ministry of Urban Development (MoUD) before July 31, but the MC has planned to hold the meeting on July 27. 

In the past, the MC had rejected the house tax agenda, but if UT officials are to be believed, under the Smart City Mission, implementation of schemes under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and revenue generation are key parameters. The UT and the MC had signed an MoU with the Union Government under the JNNURM, which mentions that they will have to levy tax on residential property if they want the grants to be issued for developmental works and projects. 

  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.

  Thereafter, the UT Administration sent a proposal to the MC to revise the tax rate for 2014-15. In October, the general house of the MC had rejected the agenda.