The Times of India             24.09.2013

Property tax to save Amritsar civic body's reputation

AMRITSAR: Finance starved Amritsar Municipal Corporation (AMC) is now pinning hopes to fill its empty coffers by generating revenue through newly-introduced Property Tax.

Though the state government has reduced the Property Tax on commercial properties from earlier 15% to 3%, it has brought lakhs of residential units in its ambit.

"People should not consider the property tax as a burden but the money collected would be spent on providing basic infrastructure in residential colonies besides development of city," said Amritsar Municipal Corporation commissioner DPS Kharbanda while talking to TOI on Monday.

Three lakh properties including 30,000 commercial units in Amritsar with a population of 11.27 lakhs would now have to pay the property tax that would increase MC's income by up to Rs 60 crore per annum.

"The people have been given the right of self assessment instead of earlier government assessment," he said.

For the purpose the city had been divided into 8 zones.

Three-member teams would camp in colonies with online computer system and bank transaction arrangement to collect tax.

According to sources, in the past, various center government projects including those falling under Jawaharlal Nehrtu Urban Rurual Mission (JNNURM) were stalled due to non-availability of matching grant with the MC's but now these projects would be off the shelves.

Sources also informed that, earlier, several pending works including repair of roads of residential colonies, street light, etc, were not done due to paucity of funds but with collection of Property Tax, MC was hopeful to deliver its duties.

Kharbanda informed that the money generated through Property Tax would help MC to give matching grants for the developmental projects. However, owners of residential properties are not happy with levying of new tax.

"Why should we pay new tax, we have already been paying other taxes, it is the duty of the government to provide infrastructure in residential colonies, government has failed to generate revenue from other sources so they are making us victim of their failures and forcing us to shell out money to keep the government running," fumed Kashmiri Lal, owner of 250 square yard residential property in a prime colony.

According to reports, people who own 50 and 100 square yard house have to pay Rs 50 and Rs 100 respectively per year but those having houses above 100 square yard have to shell out anything between Rs 1000 to Rs 1500.