This is an archive article published on March 19, 2023
Property tax in J&K will make civic bodies self-reliant: Srinagar MC commissioner
From April 1, the municipal corporations of Srinagar and Jammu are expected to levy property tax on residential and commercial buildings within their jurisdiction, along with 19 municipal councils and 57 municipal committees in the UT.
3 min readSrinagarUpdated: Mar 19, 2023 08:12 AM IST
In the case of Srinagar MC, public works are supported only by government grants. “The focus is on ensuring financial self-sufficiency and resource optimisation,” he said.
Property tax in J&K will make civic bodies self-reliant: Srinagar MC commissioner
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Political parties opposing the move to introduce property tax in Jammu and Kashmir notwithstanding, officials say that it is a step aimed at resource optimisation and making the urban local bodies financially self-sufficient.
From April 1, the municipal corporations of Srinagar and Jammu are expected to levy property tax on residential and commercial buildings within their jurisdiction, along with 19 municipal councils and 57 municipal committees in the UT.
In absence of earning from property tax, the urban local bodies of the UT are solely dependent on government grants.
In 2021, for all the urban local bodies in J&K, a sum of Rs 1,465.29 crore was provided by the Centre and the UT administration, and their own resources mobilised only Rs 114.95 crore.
Srinagar MC Commissioner Athar Aamir Khan said while surveys are currently under way to estimate the revenue earnings through property tax, the levy will definitely help the corporation in improving services.
In the case of Srinagar MC, public works are supported only by government grants. “The focus is on ensuring financial self-sufficiency and resource optimisation,” he said.
For some services, the corporation has moved to a user charge model, however, the corporation barely meets 10 per cent of its financial liabilities through internal resources, he said.
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While property tax provisions were part of the Municipal Act 2000, (Section 65 -1,a), the rules were not framed and it was never implemented. Section 143 A, added to the Act in October 2020, states, “The government may, by notification, make such interim arrangements for the assessment and collection of one or more of the taxes and fees levied in terms of any of the provisions of this chapter as may be deemed necessary or expedient.”
The criticism to the move has come on various counts, including the fact that levying property tax is a “prerogative of elected governments”, as well as the apprehension that even if the charges are nominal at the moment, they are unlikely to remain so. The Act provides for an increase in the rates after a period of three years by about 15 per cent.
Considering this, the Housing and Urban Development Department of the UT administration on Friday (March 10) invited suggestions and comments to the proposal via email within 10 days.
At present, Srinagar has about 2.5 lakh properties, both residential and commercial. Of this, about 30 per cent to 40 per cent are expected to be exempted as per a property tax formula, also detailed in the rules that were notified in February this year.
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For residential properties, property tax has been fixed at 5 per cent of Taxable Annual Value (TAV) while commercial properties will pay 6 per cent of TAV. The TAV itself is a measure of nine factors including land value, area factor, number of floors and construction type, among others.
Naveed Iqbal is a Senior Assistant Editor at The Indian Express, and reports from Jammu and Kashmir. With a career spanning over 15 years in frontline journalism, Naveed provides authoritative reporting on the region’s transition, governance, and the socio-political implications of national policies.
Expertise
Regional Specialization: Based in the Srinagar and New Delhi bureaus, Naveed has spent over a decade documenting the unique challenges of Jammu and Kashmir. Her reporting is distinguished by deep contextual knowledge of the region's post-Article 370, statehood debates, and local electoral politics.
Key Coverage Beats: Her extensive body of work covers:
Politics & Governance: Tracking the National Conference (NC), PDP, and BJP dynamics, including in-depth coverage of J&K’s first Assembly sessions and Rajya Sabha polls following the reorganization of the state.
Internal Security & Justice: Providing rigorous reporting on counter-insurgency operations, terror module investigations, and judicial developments involving political detainees and constitutional rights.
Education & Minority Affairs: Highlighting systemic issues such as quota rows in J&K, public service commission reforms, and the challenges faced by minority communities. ... Read More
