A day after the municipal corporation outrightly rejected the imposition of house tax, UT adviser Vijay Kumar Dev, in a meeting with officers of the administration and municipal corporation, made it clear that house tax’s imposition was imminent.
The adviser said the levy was essential since generating funds locally was a prerequisite under the Centre’s ‘Smart City’ project.
The adviser, who held the meeting at the UT guest house on Thursday evening, asked the civic body officers to come out with a formula to fix house tax rates for different categories of houses after going through Punjab and Haryana’s policy on the issue. The meeting was attended by MC commissioner Bhawna Garg and home secretary Anurag Aggarwal, among others.
Speaking to HT, a senior officer of UT administration told HT, the MC had signed a memorandum of understanding with the union ministry of urban development in 2007 under Jawaharlal National Urban Renewal Mission, wherein it agreed to impose house tax to generate funds.
The officer said, “We had communicated to the MC several times to impose the tax as the Central won’t fund all the projects. House tax would generate revenue for the MC and it would not have to depend on central grants.”
In 2013, the MC had imposed house tax at the rate of Rs 1 per square yard for houses covering an area of 125 square yards or more. In 2014, the administration proposed to increase the tax from Rs 1 per square yard to Rs 20 per square yard, but the MC House did not agree, as a result, the tax collection had not been done for the last two years. Chairman of house tax committee, Subhash Chawla, said, “If the administration will impose the house tax, we will take legal route to oppose it as we do not want to burden the residents.”