The Hindu : New property tax system anti-people: BJP

Online edition of India's National Newspaper
Sunday, Jan 18, 2004

New Delhi

New Delhi

New property tax system anti-people: BJP

By Our Staff Reporter

NEW DELHI, JAN. 17 . The Bharatiya Janata Party has opposed the implementation of the `Unit Area System' for assessment of property tax in Delhi in its present form arguing that it was full of anomalies and would result in more harassment for Delhiites.

The system would benefit commercial properties and farmhouses, while it would impose heavy burden on ordinary residents of the Capital as this would increase the house tax by at least five to 50 per cent, besides bringing the exempted properties in the tax net, alleged the Delhi BJP president, Harsh Vardhan.

Dr. Harsh Vardhan's comments were based on the three-member committee set up by the BJP to study the recommendation of the Municipal Valuation Committee. Headed by the Leader of Opposition in the Delhi Assembly, Jagdish Mukhi, the other two members were the Leader of Opposition in MCD, Subhash Arya, and the Councillor and BJP secretary, Vijender Kumar.

Alleging that the new system was anti-people, not rational and justified, Dr. Harsh Vardhan threatened to launch a people's movement against it if implemented. The new system would increase the tax liability of old properties, usually owned by lower and middle class, he said. Owners of rented properties are required to pay double house tax under the new arrangement.

Dr. Harsh Vardhan said the properties thus far exempted from property tax having ratable value up to Rs. 1,000, self-occupied residential properties in abadi area of urban villages, built up structures over 26 metres plots / janata flats would be subject to house tax under the new system.

Criticising the categorisation of colonies / localities into eight categories from A to H for the assigning Unit Area Values, he alleged that the elected representatives were not taken into confidence on this issue, resulting in grave anomalies. Ground realities have not been taken into consideration. "The areas inhibited by the middle, lower and economically weaker sections but surrounded by posh localities would have to pay house tax at that of the latter. On the other hand, farmhouses would have to pay property tax at the rate of the adjoining rural village, which is the lowest. This would provide relief to the affluent sections of the society,'' he said.

Commenting on the recommendation of the Municipal Valuation Committee to leave the decision on imposing house tax on hospitals and educational institutions, he alleged this was done under "political and bureaucratic pressure.''

Objecting to the self-assessment provisions, he claimed that a majority of the property tax payers were owners of small properties or clustered locations and often uneducated in these matters.

Referring to the penal provisions including rigorous imprisonment from three months to seven years and a fine up to Rs. 5 lakhs, he feared that this would result in victimisation of people and provide more discretionary powers to bureaucrats.

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