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Holding tax hike likely

Staff Reporter

`People should be ready to pay for the services from local bodies'

BERHAMPUR: People living in urban areas of Orissa should get prepared for hike in holding tax rates, hinted Urban Development Minister K. V. Sighdeo.

Speaking at a seminar organised in the city on Saturday, the Minister quipped that people in Orissa are yet to be mentally prepared to pay for the services that they get from their local bodies. One of the major sources of revenue for urban local bodies is the holding tax collection from the inhabitants in its area.

`Lowest rate'

Mr Singhdeo said rate of holding tax is the lowest in comparison to other states of the country. Urban local bodies have not revised it for decades. He blamed lack of political will by the elected representatives for not taking the hard decision to hike the holding tax at urban centres. The elected members and political parties usually fear public uproar against any hike in holding tax that may affect support bases. "If holding tax rate is hiked it is surely going to face a public backlash but in the long run it would benefit the general public," he said.

According to him the urban local bodies have to increase their source of income to meet their needs including basic things like proper sanitation, which makes increase in holding tax inevitable.

In a city like Berhampur the holding tax rates have not been revised since sixties. The citizens allege there is no distinct parameter for fixing holding tax for buildings and it is being done at the whim of municipal officials. Houses with same plinth area of similar construction at times are charged differently due to some mysterious reasons. The point of increasing holding tax has come up at the municipal council meetings of Berhampur municipality in the past without any conclusion. But a survey is continuing in the city to fix the new increased holding rate for the city that would also increase the revenue of the municipality. But it is for sure no political party or leader would agree to implement holding tax hike as the elections are expected after one and a half years.

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