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No hike in house tax

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The Times of India                23.04.2013

No hike in house tax

VARANASI: The Varanasi Municipal Corporation on Monday turned down its decision of hike in house taxes. After seeing massive protest by VMCcorporators of various political parties for over 10 days, municipal commissioner, RP Singh had to revert back from the decision when the state government directed the officials to turn down the decision.

It may be mentioned here that VMC had increased the house tax after a gap of three years on April 11. The increased tax however was not applicable on the houses for, which the tax value is less than Rs 2000. Rest of the houses however witnessed an increased between 5 to 25 percent. While the protest for the hike in taxes already started, on April 17, additional municipal commissioner, Sachidanand Singh excluded as many as 60,000 houses from paying the increased house taxes by announcing that the increased taxes will not be applicable to the houses for, which the tax value is less than Rs 3000.

Singh also informed to encourage house tax collection VMC is the first municipal corporation to free the tax payers from paying the interest on the long pending taxes from January to April 15 and allowed such tax payers to pay the basic tax value only. According to Singh, such a step has relieved a lot of tax payers. He also informed that as many as 1.77 lakh houses have been identified under VMC, out of which 1.45 lakh were accounted for paying taxes in 2012-2013. An amount of Rs 19.25 crores has been collected as house tax in the last financial year. The proposed target for house tax collection in the current financial year is 23 crores.It may be mentioned here that before tabling its financial budget VMC had proposed for making a hike in the house taxes in March. This brewed resentments among locals and corporators were also not in a mood to support this move of corporation. Following which, during the budget session the house unanimously decided that no such hike would be made. However, on April 11, municipal commissioner, RP Singh increased house tax stating it as measure to meet expenses and proper functioning of VMC.
Last Updated on Tuesday, 23 April 2013 11:05