The Jharkhand government decided to bring amendments in the new property tax and defer the implementation date. The tax was scheduled to come into effect from May 1.
State urban development minister CP Singh on Friday told Hindustan Times that some amendments were required in the new property tax to lower the burden on the common man.
The Ranchi Municipal Corporation (RMC) on April 24 announced imposition of a new property tax which will be calculated from April 1, 2014 and was expected to come into effect from May 1 this year.
According to the new tax rules, an owner has to pay 2.5% tax of the rental value of estimated 75% of the carpet area of a house.
However, the payment of property tax will depend on the distance of a house from the main and other roads and the type of rooftops – made of concrete, asbestos and traditional stuff.
An RMC official said, “An owner, who pays Rs 720 every year for a house on 1,000-square-foot area, has to pay Rs 2,700 under the new property tax rule.”
“The rates under the new property tax had been fixed during the previous Jharkhand Mukti Morcha-led government, which needs some amendment. In my view, it is not logical to levy the tax from April 1, 2014. It will add financial burden on Ranchi people,” Singh said.
The RMC faced sharp criticism from the elected body members, political parties and chamber body soon after it announced the date for the new property tax.
The JMM workers on Friday burnt an effigy of chief minister Raghubar Das while the minority wing of Congress party burnt an effigy of urban development minister CP Singh in protest. JMM spokesperson Supriyo Bhattacharya said the Bharatiya Janata Party-led government in Jharkhand was working against the interests of the common man.
“The tax rate is exorbitant and it is not acceptable to levy tax from back date, i.e. April 1, 2014,” he said adding that the party would launch an intensive agitation if the new property tax was not amended.