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The residents of Kharar are up in arms against the imposition of hefty property tax on self-occupied commercial properties. The Municipal Council (MC) recently issued property tax bills to the owners of these properties for 2007-08 and 2008-09.
Earlier, the MC was collecting property tax from the owners of rented properties only. The bills, running into thousands for a single property per annum, not only came as a rude shock to the locals but are also contrary to the decision of the council to withdraw the levy in March 2008.
“Charging Rs 4,500 per annum for my shop has made me a tenant of the council,” said Joginder Sethi.
The traders have decided to launch a mass agitation against the civic body and not deposit the property tax. In March last year, the MC had decided to withdraw its decision to levy tax after a massive protest by the traders.
While council president Sukhwant Singh, senior vice-president Roshan Lal and Kharar Congress MLA Balbir Sidhu have come in support of the traders and assured to get the levy withdrawn again, Kharar MC Executive Officer (EO) R K Mittal said the civic body is not competent to withdraw the property tax.
“We have issued bills following the state government directive in accordance with the apex court’s verdict,” he said, while revealing that the council’s resolution to withdraw the property tax was rejected by the state government.
Mittal said the civic body will go ahead in issuing bills and recovering the levy notwithstanding the public protest. “We are also short of funds to meet our establishment expenses after the octroi abolition,” he said, adding if the property tax is abolished than the civic bodies will not be able to pay their employees.
Sukhwant Singh said: “We are public representatives and we are with the public. We will safeguard the public interest at every cost. We will adopt a resolution in the next MC meeting to withdraw property tax on self-occupied commercial property.”
Terming the issue ‘very serious’, Roshan Lal said: “We will call a special MC House meet next week to take up the matter and seek the withdrawal immediately.”
MLA Sidhu said he will not let the civic body charge property tax on self-occupied property against the public wish. “I will lend all possible help and support to the public for have the decision withdrawn,” he asserted.
On March 24, 2008, the Kharar MC had unanimously resolved to cancel the fresh assessment of imposing property tax on self-occupied properties following massive protest by the local traders who had held a day’s strike. It had decided to adopt the old pattern of house tax on rented properties with a provision to increase up to 5 per cent of the old levy.
Former MC chief demands probe
Former municipal commissioner Dr P K Jain has urged the state government to conduct a probe into the levy of property tax on self-occupied properties on the basis of a survey conducted by the non-technical staffers. In a representation to Punjab Local Government Minister Manoranjan Kalia, Dr Jain pointed out that when the state government is still considering the pattern of other states for imposing property tax in Punjab, the action of the Kharar MC to impose tax requires investigation. He also sought inquiry into the manner in which the assessment for the property tax is made and the allegations of widespread corruption and discrimination in the assessment procedure. “When the assessment is not even approved by the MC House, the issuance of bills is illegal,” he added.


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