Govt okays 50 % of proposed formula of property tax in J&K

Jammu: The Jammu and Kashmir government has cleared the proposal for imposing property tax in Jammu and Kashmir but only 50 per cent of the proposed Taxable Annual Value.
“Taxable Annual Value is a combination of MTF, LVF, ARF, CTF, AGF, OSF and FF. MTF is the municipality Type Factor, LVF is the land Value Factor, ARF is Area Factor, FF is Floor Factor, CTF is Construction Type Factor, AGF is the Age factor and OSF is Occupancy Status,” an official told The News Now.
Once implemented, it will be the first time that residents of Jammu and Kashmir have to pay the property tax. Though, earlier the government planned to implement the property tax nothing was done afterwards.
While after the abrogation of Article 370, the Government of India paid the way for the implementation of property tax in Jammu and Kashmir by issuing several amendments in the municipal act. In October 2022, the Ministry of Home Affairs (MHA) empowered the J&K administration to impose Property Taxes through the Municipal Corporations, Municipal Councils and Municipal Committees in the Union Territory.
Further, the amendments were made in the Jammu and Kashmir Municipal Act, 2000 and Jammu and Kashmir Municipal Corporation Act, 2000 carried through the Jammu and Kashmir Reorganization (Adaptation of State Laws) Order, 2020.
While the amendments were made, Jammu Municipal Corporation (JMC) made it clear that there would be no property tax imposed in Jammu. Last month, a General House Meeting was chaired by Jammu Municipal Corporation.
A question was raised by one of the corporators objecting to the imposition of Property Tax in Jammu, to which JMC Mayor Rajinder Sharma replied that No Property Tax shall be imposed in Jammu.
While on the other hand, speaking to The News Now, Deputy Mayor Srinagar Municipal Corporation Parvaiz Qadri said, “It is the Municipal Corporation that proposes that property tax to the government on commercial and residential ones under the Municipal Act 2022”.
As of now, we have not sent any proposal to the government. Secondly, he added that if the government sends a recommendation or order, there will be a General House Meeting, wherein, the decisions will be taken.
Adding that he said, “First the government needs to understand that several residential properties have been converted into commercial property and the SMC have no proper data over it. So, how can we ask someone to pay the property tax when they have converted the property illegally and have no record?”
Moreover, it is the implementing agency that has to take decisions which is the municipal council. Also, we have to look into the below poverty line people. On the one hand, they are being provided loans by the government for constructing houses and in the second go they will be asked to pay property tax, he said.
As of now, we have not received such an order regarding the property tax, Deputy Mayor SMC Qadri said.