* Lower rates in comparison to other States/UT, residential houses upto 1,000 Sqft exempted *
STATE TIMES NEWS
JAMMU: A robust and effective system of local self-government is foundational to the effective functioning of a democracy. A fundamental enabling condition for such a system to exist is to have adequate finances at the disposal of the institutions of self-government, and the more such finances are mobilized at the local level by these governments, the better for their effective functioning. One of the essential pillars of municipal financing the world over is property taxes. Government of India and the Finance Commissions set up by it, have been strongly recommending tapping this resource from time to time.
Accordingly, Government of Jammu and Kashmir has notified the property tax with the aim to improve financial health of Municipal bodies to enable them to provide better Municipal services. Tax rates in UT of J&K are notified in such a way that Tax implication are progressive in nature with minimum implication to small businesses and Households. Further, as property Tax is being imposed for the first time in J&K; J&K has notified lower property tax rates as compared to neighbouring states/UT. It is pertinent to mention that Jammu & Kashmir is one of the last State/UT in India where property Tax was not imposed till date.
Property Tax is linked with Stamp duty Tax of the area so property valuation of the different area is captured differently with Property in Old city area or Sarwal will be subjected to lower property tax compared to upscale area like Gandhi Nagar. Further, weightage to age of property, use type and construction type etc is used to arrive on Annual Taxable value in a more comprehensive manner.
Under the new tax formula, residential houses with an area of up to 1000 sqft will be exempt from property taxes. Residential property with build up area upto 1500 sqft are also discounted ensuring relief for LIG and MIG category residential houses. Tax rates for other kind of residential properties are also kept on the lower side viz a viz neighbouring states/UT.
For residential establishments
(Tax payable in Rs)
Similarly, small commercial establishment especially shops upto size of 100sqft and 200 sqft are also provide relief with very minimal Tax implications. It is pertinent to mention that most of the shops especially in neighbourhood areas and old markets fall in this category.
For commercial establishments
(Tax payable in Rs)
As Property Tax is to be levied annually and can be paid in two equal instalment it will not be burdening common citizen. Further, as per Act 10% rebate can be availed by early submission of Property Tax.
This new Property tax policy will help municipal bodies to generate revenue for better municipal services with minimum Tax implications to residents. Better municipal services are expected to attract more investment and encourage more people to set up businesses in the J&K. Revenue generated from property taxes will be used to improve infrastructure, build new parks and playgrounds, and maintain existing facilities, significantly enhancing the services provided by Municipal bodies.