MC says no to house tax | chandigarh | Hindustan Times
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MC says no to house tax

Chandigarh MC house on Friday decided not to levy house tax on the city residents, which was desired by the administration in order to raise revenue.

chandigarh Updated: Mar 31, 2012 16:37 IST
HT Live Correspondent

The MC house on Friday decided not to levy house tax on the city residents, which was desired by the administration in order to raise revenue.

This means the civic body will lose a grant of Rs 400 crore for its two prestigious projects under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).


The house also rejected the proposal of making six underground parkings in Sectors 17 and 8 as paid parkings, but approved the project of multi-level parking in Sector 17 amid protests from the BJP councillors.

Both the Congress and BJP councillors rejected the UT administration's directions of levying the house tax. MC commissioner Vivek Pratap Singh read out a letter by the administration regarding the imposition of house tax in the UT. The proposal met with a stiff opposition from the councillors as they claimed it would burden the citizens "unnecessarily".

During the discussion, BJP councillor Davesh Moudgil said, "Since the Centre has a union minister from the city, he should help the city by getting grants sanctioned by the Centre rather than imposing house tax on the residents to fill its coffers."

Had the house tax been levied, the MC would have generated revenue of Rs 22 crore annually.

The first project under JNNURM are the augmentation of the water supply scheme, Phases 7 and 8, for bringing 40 million gallons per day water from the Kajauli waterworks. The cost of the project is around Rs 200 crore.

The other project is about replacing the sewerage pipeline network brick sewer by the RCC non-pressure pipes; it would also cost around Rs 200 crore. These projects are lying pending with the ministry of urban development for want of reply to certain queries.

The UT administration had directed the municipal corporation to levy the house tax, failing which the central funds available under JNNURM for several projects would not be made available to the MC.

The MC had also signed an MoU with the ministry of urban development that it would levy the house tax.