Why is property tax pinching?

Dr Varinder Sharma
After the approval of administrative council, the Jammu and Kashmir government is likely to impose property tax, a first of its kind in the Union Territory (UT), from April 1 this year and every political and business organisation is opposing it in their own way, Awami National Conference (ANC) being more vocal than others. This, another family run outfit which is also part of People’s Alliance for Gupkar Declaration (PAGD) led by its vice president, Muzaffar Shah went on to telling a news portal and I quote, “Nahi Denge Property Tax (We will not give property tax) and on being asked why not when entire India is paying, he added, “India is not Kashmir”.
Prior to this, many political stalwarts had tried and tested waters by believing that Article 370 will never be abrogated or 73rd and 74th amendments of the Constitution, that give urban local bodies distinct powers to focus on the grassroots level or encourage self-governance, will never be extended to Jammu and Kashmir. However, those opposed to decentralisation of powers and against giving women, west Pakistani refugees or Valmiki Samaj equal rights themselves saw tables turning on them.
The erstwhile state of Jammu and Kashmir which became a Union Territory after the smooth passage of J&K Reorganisation Act was in fact known to be a corrupt state with no sign of good governance visible anywhere. Transparency and accountability were lacking which is why employees never filled in their annual property returns or paid property tax, never marked their attendances, Human Resource Management (HRM) was lacking, concept of leaves and annual performances lacked to the core and most shockingly many got government jobs on fake degrees, diplomas and even fake appointment orders.
Similar was the situation with civic amenities. Since there existed no elected Municipal Corporations, Councils and Town Area Committees besides Panchayats and only bureaucrats ruled the system; water, electricity, garbage collection charges, parking charges and all other taxes with which cities and towns are beautified or developed were never paid. Today GST and Income Tax (IT) returns are being filed online and massive computerization of public services have also brought a transparency in the system. Now when, people are being asked to mend their ways and stay in an organised manner like everyone else is doing in rest of the country, it’s pinching many.
On the other hand, the government is also required to go little slow and make everything known to the common masses beforehand so that they know what’s coming their way. Several projects of importance started by Smart City that are irking commoners and especially traders should also be made known to people as to how they will benefit them so that they also cooperate with the government. Regarding property tax, government must come clear on slabs for different properties and make a humble beginning by levying a nominal tax so that people make a beginning which at later stages can be increased as per the law of land.
Ever since Jammu and Kashmir Reorganization (Adaptation of State Laws) Order, 2020 was passed, the ministry of home affairs amended the Jammu and Kashmir Municipal Act, 2000 and the Jammu and Kashmir Municipal Corporation Act, 2000. Under this law the Property Tax will be levied on all lands and buildings or vacant lands or both situated within the Municipal limits.
Presently chosen few corrupt, influential and sycophants who had managed to acquire properties without being answerable to anyone are the first ones to feel the heat of these taxes. They are the ones who are making much hue and cry while responsible citizens, who know how Municipal Corporations around the globe work, are preparing to get their properties assessed to pay taxes as applicable.
Today, illegal encroachments are coming down in entire UT and on the other hand those in possessions of huge properties, though legally, are being levied taxes to bring everything at par with rest of the nation. To avoid huge taxes, majority people in other metro cities prefer to live in high rise buildings but herein J&K we were all in a never ending mad race with others to build palatial homes and acquire properties knowingly that they will never be taxed, a misconception that people nurtured for the past 75 years.
I remember having awarded Bronze category Certificate of appreciation for paying my taxes in the year 2019-20, which dons my clinic wall. This small gesture from IT department makes tax payer feel important and part of building this great nation. Both UT as well as central government must encourage genuine tax payers and also honour top five tax payers of cities every year and also extend certain privileges to them. These tax payers can also be invited at Raj bhavan during Republic Day or Independence Day celebrations.
Earlier Urban Local Bodies (ULBs) in Jammu and Kashmir were not elected and due to that reason a sizeable central grant used to be released. Now when the property tax will be veiled the ULBs will get good amount of grant to develop cities. We are planning to have metro rail, build parking areas, develop parks and roads, river view fronts, are laying a network of footpaths and have already have handed certain departments like health centers, schools, Jal Shakti and electrification of roads to JMC which mean we will be requiring more grants to meet the expenses and property tax is one such source that will fill coffers.
Previous Mayor of JMC or the incumbent had been telling people that property tax will not be levied which is nothing but misguiding people. Instead, they should tell the truth that how these taxes will bring an order into the system and also make cash starved ULBs rich enough to become self-sufficient. In any way, the government is planning to first levy taxes on commercial buildings. Later on when residential buildings will come under the purview of property tax but the government must exempt certain homes so that poor are not affected. The heritage homes that depict Jammu’s typical architecture should also be exempted from the property taxes.
Property Tax Board before deciding slabs must consider these points in mind to save our heritage and also help small businessmen who are running from garages or homes and are generating employment by not taxing them. Ex-servicemen, widows of ex-servicemen, crematoriums and graveyards besides charitable buildings must also be given exemptions in property tax. Meantime people are also required to cooperate and not act like they are living in a Jungle. In a civilised society, we are all required to contribute to develop our cities. This is for the first time Jammu as well as Srinagar is seeing massive development and paying taxes honestly will boost this development by all means.
(The writer is practicing Ultrasonologist)