The proposal of the Municipal Corporation to impose House Tax at the rate of Re 1 per sq yard is all set to be re-examined by the UT Administration. It is expected that the tax being imposed would be higher than what had been proposed.
The civic body had at a meeting of the general House held a few months back given approval for the imposition of House Tax on city residents. It was decided that nominal tax will be imposed at the rate of Re 1 per sq yard. The proposal was recently sent to the UT Administration.
However,the administration has decided to re-examine the proposal before a final decision is taken. The Municipal Act is likely to be taken into consideration before the imposition of the tax. As per the Act,the tax is to be imposed by zoning of the city,as has been done in case of property tax on commercial property.
The Administration will also examine how the tax can be on the houses constructed by the Chandigarh Housing Board. In some places the houses above two kanals have been divided and different families stay there. The imposition of tax on them will also be examined.
Municipal Commissioner Vivek Pratap Singh said that MC had sent the proposal as was approved by the councillors. It is the UT Administration that is competent to impose taxes. The final notification has to be issued by them, he added.
Joint Secretary (home) M M Sabharwal said that the proposal would be examined and after the modalities had been worked out,the tax be imposed.
The administration had been sending repeated reminders to the Municipal Corporation for the imposition of House Tax. This is one of the conditions to be fulfilled for getting grants under the Jawaharlal Nehru Urban Renewal Mission. There are certain projects that have been undertaken in the city with funds from JNNURM. The Centre had warned that if the condition to impose tax is not fulfilled,it would affect future grants to the city.
The proposal has been debated for the past few years. However,every time the MC had rejected it. This time,the proposal was brought to the House by the nominated councillors and with the support of Congress it was approved.