Sanjeev Pargal
JAMMU, Apr 12: The Government has decided to study various models of Property Tax in different States before implementing it in Jammu and Kashmir after the Legislature nod to setting up of Property Tax Board and imposition of property tax in the State for the first time.
After hanging in balance for more than two years after it was first introduced in the Assembly in budget session in 2010, the Property Tax Board and Property Tax bills were cleared by the Upper House in its just concluded session.
Official sources said that the Government in the initial stage would set up the Property Tax Board, which would study various models of Property Tax across the country, both for urban and rural areas, before implementing it.
Setting up of Property Tax Board and implementation of Property Tax across the State was a major pre-condition of the Union Urban Development Ministry as a part of urban reforms to release the funds. During last financial year, the State had to face a cut of 10 per cent i.e. Rs 46 crores for not implementing the urban tax reforms.
Urban Development and Local Bodies Minister Nawang Rigjin Jora told the Excelsior that the Government was not going to take any decision in haste on Property Tax and would like to study various model in force across the country including the slabs for urban and rural areas.
“Various models applicable in other States of the country would be placed before the Cabinet, which would take a final call on the tax structure,’’ Mr Jora said.
He added that the Urban Development Department, in the first phase, would set up the Property Tax Board, which would tour different parts of the country, study the tax base and given recommendations to the Department depending upon the conditions prevailing in the State.
Sources said the tax structure mentioned in the legislation was not practicable and the Department had the options to study various tax structures across the country before making final recommendations to the Cabinet, which had to take a call on them. They added that the tax structure mentioned in the Act could be amended once the Government takes a decision.
The Government had in 2011 passed the bill in budget session of the Assembly proposing setting up of Property Tax Board and implementing Property Tax. However, the bill was blocked in the Legislative Council, where the Elders wanted it to be sent to the Select Committee.
The Select Committee was never set up and the bill lapsed. The Legislative Assembly again passed the bill in 2012 but the Upper House again referred it to the Joint Select Committee. The Select Committee didn’t met nearly for a year. However, it met hurriedly during the budget session and cleared the bill, which was passed by the Legislative Council during budget session this year.
Sources said though the Government wanted implementation of Property Tax and setting up of the Board, some of the Ministers and legislators of National Conference-Congress Alliance were of the view that it could mar their prospectus as the tax would be imposed for the first time.
“On the one hand the Government feared 10 per cent cut in urban reforms grant for another year if the Property Tax and some other reforms were not implemented while on the other hand it was afraid of losing vote bank,’’ sources said adding that some of the Alliance leaders were of the view that imposition and collection of Property Tax should be left to the Urban Local Bodies once the elections were held to them.
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