J&K to levy property tax in consultation with public: L-G

Pointing out that citizens’ welfare is the foremost priority of the government, he said the property tax will ensure the financial self-sustainability of cities and the improvement of public amenities in the Union Territory.

“Our cities must witness rapid development and emerge as engines of growth. For that, the financial self-sustainability of cities is necessary. Property tax in J&K will be one of the lowest in the country and will be used for improving public amenities in J&K,” he added.

The Union Territory administration had Tuesday notified rules for the levy of property tax on people living within the territorial jurisdiction of urban local bodies across Jammu and Kashmir with effect from April 1 this year.

This has been done in the exercise of the powers conferred by Section 71A of the Jammu and Kashmir Municipal Act, 2000, read with Sub-Section 1 of Section 65 and Sub-Section 1 of Section 73, said the notification issued by principal secretary (Housing and Urban Development department) H Rajesh Prasad. Following the August 2019 abrogation of Article 370, which guaranteed special status to the erstwhile Jammu and Kashmir state, the Ministry of Home Affairs had in October 2020 allowed the UT administration to impose property tax through urban local bodies.

According to the formula for levy of property tax, it will be 5 per cent of Taxable Annual Value (TAV) in residential property and 6 per cent in the case of non-residential property. The TAV of a property will be decided keeping in mind factors like the type of the municipality, one-tenth of the land value rate as notified by the government, floor, area, usage, age of property, slab, and occupancy, among others.

The decision, however, has evoked sharp protests from Opposition parties, social and trade organisations. While the National Conference, the Congress, and the Democratic Azad Progressive Party have already announced that they will reverse all “anti-people” decisions taken by the present dispensation if they were voted to power, the Jammu Chamber of Commerce and Industry led by its president Arun Gupta has warned the administration of giving a Jammu bandh call if it did not withdraw its decision to levy property tax on the people.