After councillors of the Municipal Corporation unanimously rejected the proposal during a recent meeting of the General House, the Chandigarh Administration on Monday took a decision to impose house tax with effect from current financial year by using its veto power. The notification issued by the administration stated that since the Municipal Corporation failed to comply with directions of the administration in regard to house tax, the administration was forced to invoke the provision of Section 90 (5) of the Punjab Municipal Corporation Act, 1976, as applicable in UT to impose house tax. The decision was taken following a meeting of the officials of the administration with UT Administrator Kaptan Singh Solanki on Sunday. The UT Administration had directed the MC several times for imposition of house tax. It was stated that Chandigarh’s selection in top 20 cities of the Central government’s smart city mission was at risk due to the MC’s low revenue generation. The MC, which is set to earn approximately Rs 20 crore with this move, has been directed to start collection of house tax as per the devised formula. The MC had earlier imposed house tax at the rate of Re 1 per square yard per annum. The administration has exempted from tax the houses situated in colonies and villages. Houses below two marlas and flats below 500 square feet have been exempted in order to give relief to cheap houses and LIG/EWS flat owners located in various sectors. For the purpose of taxation in urban areas, the city has been divided into three zones with premier sectors set to pay more. A resident of a one-kanal house in zone 1, covering sectors from 1 to 19 and 26 to 28, will end up paying a maximum of Rs 7,750 per annum as the tax. Similarly, a resident of a one-kanal house in zone 2 and zone 3 will pay around Rs 6,200 and Rs 4,650 respectively. Owners of 10-marla houses will have to pay around Rs 3,000-Rs 4,000 depending upon their zoning while 5-marla house onwer will end up paying somewhere around Rs 2,000-2,500. The administration has exempted flats below 500 square feet of covered area from tax. For area more than this, residents will be charged at the rate of Re 0.75 per square feet per annum. For instance, HIG flat holder will pay approximately Rs 1,500 per annum while MIG flat owner will pay approximately Rs 600 per annum. This rate will be applicable to all the flats of Chandigarh Housing Board, co-operative house building societies and other residential flats (excluding SCFs). Justifying the move, Home Secretary Anurag Agarwal said that tax was imposed since it was necessary for the MC to raise its own resources for the development of the city and provision of quality service to the citizens.
