The Times of India 17.09.2010
MC evading house tax imposition?
CHANDIGARH: Despite several reminders from both the ministry of urban development and the UT administration to impose residential property tax in the city, municipal corporation is in no mood to displease the public by levying it. One key factor behind it might be the local body polls next year.
Last week in a coordination committee meeting, UT had asked MC to immediately impose the tax, so that the ministry did not stop grants under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for developmental works. In an agreement signed by MC with the ministry in 2005, the civic body had said that it would take effective steps to increase its revenue and imposition of property tax was one of the issues.
Though political representatives held there was no need to impose any tax on public as the civic body has surplus budget, sources said the Congress, which was in power in MC, did not want to take any such decision that might mar its prospects in polls next year.
A few months ago, MC officials had moved the proposal in the form of an agenda item to the tax committee, but the latter had declined it by terming it an "unnecessary burden on public". The officials had made two slabs — in the first slab, the annual income from the tax was estimated to be about Rs 22 crore and in the second, it was around Rs 28 crore.
Pardeep Chhabra, former mayor and senior Congress leader, said, "Residents should not be targeted. Instead, tax should be levied on commercial ventures that have come up in IT Park. The park was planned for IT companies, but a number of other firms are running their businesses and offices from there."
A senior MC officer said, "We have asked political representatives many a time, but they always reject the issue."
The UT administration gets financial grant of crores of rupees from the Centre under JNNURM for developmental projects and of this, MC gets over Rs 100 crore.
Last week in a coordination committee meeting, UT had asked MC to immediately impose the tax, so that the ministry did not stop grants under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for developmental works. In an agreement signed by MC with the ministry in 2005, the civic body had said that it would take effective steps to increase its revenue and imposition of property tax was one of the issues.
Though political representatives held there was no need to impose any tax on public as the civic body has surplus budget, sources said the Congress, which was in power in MC, did not want to take any such decision that might mar its prospects in polls next year.
A few months ago, MC officials had moved the proposal in the form of an agenda item to the tax committee, but the latter had declined it by terming it an "unnecessary burden on public". The officials had made two slabs — in the first slab, the annual income from the tax was estimated to be about Rs 22 crore and in the second, it was around Rs 28 crore.
Pardeep Chhabra, former mayor and senior Congress leader, said, "Residents should not be targeted. Instead, tax should be levied on commercial ventures that have come up in IT Park. The park was planned for IT companies, but a number of other firms are running their businesses and offices from there."
A senior MC officer said, "We have asked political representatives many a time, but they always reject the issue."
The UT administration gets financial grant of crores of rupees from the Centre under JNNURM for developmental projects and of this, MC gets over Rs 100 crore.
