The Statesman                 30.05.2013

North Corpn mayor, commissioner lock horns over tax hike

NEW DELHI,: The mayor and commissioner of the North Corporation have locked horns on the issue of increase in property tax with the former summoning a special House meeting to undo the latter's order to increase property tax by 10 per cent for industrial sector and putting them under the category of commercial establishments.

The ruling BJP in all three corporations had decided not to increase property tax. However on 1 April, the commissioners of the three corporations increased property tax by over 10 per cent for industrial sector, putting them in the category of commercial establishments, without a nod from their respective Houses.   
The North Corporation mayor, Mr Azad Singh, said: "No tax hike or new tax can be imposed without the approval of the house. The commissioner has overstepped his jurisdiction and in fact superseded the house. A special house meeting will be summoned to undo the order," Mr Singh added, "He has to take it back and issue a fresh order immediately to nullify the effect of the previous one." 

The leader of the house, Mr Mahender Nagpal, said the special house session has been summoned on 5 June to discuss the matter and a motion will be passed. The matter came to light when some groups of industrialists expressed their concern to the mayor and members of the standing committee and reminded them of their promise not to hike taxes. 

"We were surprised to know that the three municipal commissioners passed an order to increase the property tax by 10 per cent for industrial sector. They also abolished the category of industrial sector and put it along with commercial category," said Mr Ram Kishan Singhal, Chairman of Standing Committee in North Corporation. In the order, signed by the municipal commissioners of the three civic bodies, all non-residential properties above 100 square yards plot have been put in 'special non-residential' category along with commercial properties and they will have to pay property tax at the rate of 20 per cent. The order is applicable for the current financial year. Earlier, the rate of property tax for industrial and commercial establishments was a maximum of 10 and 12 per cent respectively.