The Times of India 23.09.2009
Unbolt talk on house tax, UT to MC
CHANDIGARH: The firm stand taken by municipal councillors on the contentious issue of property tax and water tariff hike threatens to stop the flow of central funds to city under Jawaharlal Nehru National Urban Renewal Mission (JNNURM). This, coupled with Third Finance Commission endorsing the proposal of tariff hike and house tax, could land UT administration in a tight spot.
According to the proposal, 2-5% house tax and an increase in water tariff for up to 15,000 units from Rs 1.75 to Rs 3.5 per unit would be imposed.
Interestingly, though the mayor had rejected the possibility of house tax imposition, home secretary Ram Niwas on Tuesday said the issue ‘‘should at least be deliberated’’ in the forthcoming MC house meeting on September 25. ‘‘That’s the only way a well-considered decision can be taken on the matter, which is set to have far-reaching consequences,’’ he added.
However, mayor Kamlesh said since the proposal had been rejected outrightly, there was no reason to bring it on house meet agenda. ‘‘When two JNNURM-sponsored projects of introducing SCADA system and tertiary treatment for water management in the city have failed to take off, there is no question of going ahead with water tax plan. Similarly, when other cities like Panchkula are withdrawing property tax, Chandigarh MC, which already has surplus funds, can’t impose it,’’ she said.
Justifying the levying of commercial tax around five years ago, Kamlesh said, ‘‘This was done at a time when the MC’s financial health was poor.”
She also sought to delink the issue from the ongoing tiff between councillors and MC officials sparked off by her demand for authority to write the annual confidential reports of the staff.
In its report submitted in February, Third Finance Commission had pointed out that many municipal corporations collect substantial revenue by way of tax on residential property. The initiative would help in building the financial strength of Chandigarh’s civic body, it mentioned.
In the past, there have been three precedents wherein UT administration has sent a directive to MC to make it approve the controversial proposals.
These include the plan to set up a multi-level parking in Sector 17, garbage processing plant at Dadumajra and introduction of paid parking in city. Former mayor Pardeep Chhabra said the proposal drafted by MC officials on user charges was not concrete and could not be approved in haste.
“Though the proposal is based on the plea that MC has already committed to JNNURM to generate revenue, a relaxation can always be sought by pointing out that the two projects sponsored under the scheme (SCADA and tertiary water system) are far from complete,” he added. Even though MC officials propose to raise additional revenue of Rs 25 crore per annum by imposing property tax, the civic body is already revenue surplus. “With elections due in neighbouring Panchkula, where the tax was withdrawn, such an unpopular move cannot be given a go-ahead with proper justification,” said a Congress councilor.
The contentious proposal to install water meters in colonies has also been struck off from the House meting agenda by the mayor. After a visit to the slum colony in Dadumajra on Tuesday, she claimed that most residents were not getting regular water supply.
According to the proposal, 2-5% house tax and an increase in water tariff for up to 15,000 units from Rs 1.75 to Rs 3.5 per unit would be imposed.
Interestingly, though the mayor had rejected the possibility of house tax imposition, home secretary Ram Niwas on Tuesday said the issue ‘‘should at least be deliberated’’ in the forthcoming MC house meeting on September 25. ‘‘That’s the only way a well-considered decision can be taken on the matter, which is set to have far-reaching consequences,’’ he added.
However, mayor Kamlesh said since the proposal had been rejected outrightly, there was no reason to bring it on house meet agenda. ‘‘When two JNNURM-sponsored projects of introducing SCADA system and tertiary treatment for water management in the city have failed to take off, there is no question of going ahead with water tax plan. Similarly, when other cities like Panchkula are withdrawing property tax, Chandigarh MC, which already has surplus funds, can’t impose it,’’ she said.
Justifying the levying of commercial tax around five years ago, Kamlesh said, ‘‘This was done at a time when the MC’s financial health was poor.”
She also sought to delink the issue from the ongoing tiff between councillors and MC officials sparked off by her demand for authority to write the annual confidential reports of the staff.
In its report submitted in February, Third Finance Commission had pointed out that many municipal corporations collect substantial revenue by way of tax on residential property. The initiative would help in building the financial strength of Chandigarh’s civic body, it mentioned.
In the past, there have been three precedents wherein UT administration has sent a directive to MC to make it approve the controversial proposals.
These include the plan to set up a multi-level parking in Sector 17, garbage processing plant at Dadumajra and introduction of paid parking in city. Former mayor Pardeep Chhabra said the proposal drafted by MC officials on user charges was not concrete and could not be approved in haste.
“Though the proposal is based on the plea that MC has already committed to JNNURM to generate revenue, a relaxation can always be sought by pointing out that the two projects sponsored under the scheme (SCADA and tertiary water system) are far from complete,” he added. Even though MC officials propose to raise additional revenue of Rs 25 crore per annum by imposing property tax, the civic body is already revenue surplus. “With elections due in neighbouring Panchkula, where the tax was withdrawn, such an unpopular move cannot be given a go-ahead with proper justification,” said a Congress councilor.
The contentious proposal to install water meters in colonies has also been struck off from the House meting agenda by the mayor. After a visit to the slum colony in Dadumajra on Tuesday, she claimed that most residents were not getting regular water supply.
