Outrage in J&K Over Government's Decision to Impose Property Tax
Srinagar: There is no end to controversies in Jammu and Kashmir over the decisions of the bureaucratic dispensation, which is helming the Union Territory's affairs for the past four years and eight months. The administration’s latest move to impose a property tax in the UT is facing stiff criticism from different quarters, who termed it an “unjustified” and “unwarranted” move. The move comes close on the heels of the controversial demolition drive that was marred by the allegations of arbitrariness and selectiveness.
Move to impose property tax
On February 21, 2023, J&K’s Housing and Urban Development Department issued two separate notifications for levying, assessment and collection of property tax in the urban areas of Jammu and Kashmir, where 27% of the UT’s population resides as per the 2011 census figures.
The Jammu & Kashmir Property Tax (Municipal Corporation) Rules, 2023 and the Jammu & Kashmir (Other Municipalities) Rules, 2023, notified by the government, define the procedure for collection of property tax within the limits of municipal corporations, committees and councils in the UT.
As per these rules, property tax is to be 5% of the taxable annual value (TAV) on residential properties and 6% of the taxable annual value on commercial properties.
The rules have faced widespread criticism in Jammu and Kashmir, with political parties, business bodies and even lawyers flaying the decision.
Former chief minister Omar Abdullah asked why the people of Jammu and Kashmir should pay property tax when they have no say in the decision-making process.
"“No Taxation Without Representation”. Why should people in J&K pay state taxes including the proposed property tax when we have no say in how our government is run & no say in the decision making of J&K. We are expected to be mute spectators to all unjust decisions by Raj Bhavan,” Omar tweeted.
People's Democratic Party chief Mehbooba Mufti said the imposition of property tax in Jammu and Kashmir was part of the BJP's larger agenda of impoverishing the people of J&K."The real aim is to make people of Jammu and Kashmir so poor that they don't demand anything. Look at the rest of the country, 80 crore people are getting free ration. They don't ask for jobs or cheaper fuel. They just wait for the five kg grain so that they can feed their kids. They want to bring Jammu and Kashmir also to the same level. This is part of a larger agenda to bury people of Jammu and Kashmir," Mehbooba, as per PTI, told reporters at the PDP office in Jammu.
People's Conference president Sajad Gani Lone accused the government of perpetrating economic euthanasia in Jammu and Kashmir.
“Property tax in aftermath of—-an year lost post 2019, couple of years lost in Covid is— seems determination to turn every stone that can be turned to ensure economic euthanasia (sic). Governments have pumped billions worldwide to bump start ailing economies,” Lone tweeted.
Four-time lawmaker and senior CPI(M) leader Muhammad Yousuf Tarigami termed the move “arbitrary and undemocratic”.
“The process of collecting tax and deciding the values of the tax is the sole prerogative of the elected institutions – the legislature to frame laws and the municipal councils/corporations to decide the forms and different values according to their objective realities,” he said.
The Jammu Bar Association, which is considered an influential driver of Jammu politics, termed the imposition of the property tax “tax terrorism” and suspended work in courts on Thursday against the decision.
J&K government version
After facing widespread outrage over the move, the J&K government said the property tax is lower in the UT as compared to other states and UTs.
In a press conference held in Jammu on Tuesday, principal secretary, Housing and Urban Development Department, H. Rajesh Prasad said the government of J&K has notified the property tax to improve the financial health of municipal bodies so as to enable them to provide better services.
He said J&K is one of the last UTs where property tax was not imposed till date.
BJP wary, calls for restoration of democracy
The local unit of the BJP in Jammu and Kashmir, which would otherwise take credit for administration’s decisions, appears to be wary of the move and is treading cautiously.
“ The decision of imposing property tax has been taken in a haste,” BJP's Kashmir spokesman Altaf Thakur said.
This is the second time in the past two months that the BJP is trying to distance itself from the LG-led administration’s decisions. Last month, the party’s J&K unit chief Ravinder Raina said that it has nothing to do with the demolition drive and even visited the affected areas.
The BJP fears that such decisions will dent its vote bank in Jammu, which is considered its stronghold post 2014.
In several videos which went viral on social media, Jammuites can be seen questioning and cursing BJP leaders over the demolition drive.
On the other hand, other political parties are seeking immediate restoration of democracy in Jammu and Kashmir, which has been without an elected government since June 2018 when BJP withdrew support to the Mehbooba Mufti-led government.
They have been repeatedly saying that the UT's unelected regime cannot take important policy decisions and should leave them for an elected government.
2020 legal changes gave sweeping powers to government
The amendments made to the Jammu & Kashmir Municipal Act, 2000 and the Jammu & Kashmir Municipal Corporation Act, 2000 in 2020 gave sweeping powers to the government to impose property tax for at least five years. This interim arrangement could continue beyond five years on the request of the municipal bodies.
The amendments in these Acts were made through the Union Territory of Jammu and Kashmir Reorganisation (Adaptation of State Laws) Third Order, 2020, notified by the Ministry of Home Affairs on October 5, 2020 . The MHA amended these laws as under the Jammu & Kashmir Reorganisation Act, 2019, the Centre had the powers to amend or repeal provisions in the laws made applicable to the J&K UT for a period of one year, starting from October 31, 2019.
The amendments authorised the government to make interim arrangements for the assessment and collection of taxes for at least five years.
The amendments essentially sidestepped the role of the Jammu & Kashmir Property Tax Board, which was to be set up as per a legislation passed by the Jammu and Kashmir legislature in 2013. As per the 2013 law, the Property Tax Board is empowered to review the property tax system and suggest suitable basis for assessment and valuation of properties.
The February 21, 2023 notifications vest powers of hearing appeals against property tax with the bureaucracy till the constitution of the property tax board.
While the powers to hear appeals against property tax in municipal committees and councils have been vested with the director, urban local bodies, the respective divisional commissioners have been authorised to adjudicate such appeals in the case of municipal corporations.
Enactment of legal framework for property tax
The legal framework for imposition of the property tax in Jammu and Kashmir was enacted during the National Conference-Congress rule.
The bills for imposition of property tax were introduced in the legislature of the erstwhile state in 2010 and 2011. While bills for amending the Municipal Act and Municipal Corporation Act to incorporate provisions for property tax were cleared by the J&K legislature in 2010, the bill for setting up the property tax board was cleared in 2013.
In August 2013, the cabinet approved constitution of the property tax board and approved the appointment of Jeet Lal Gupta as its head and Farhat Tasneem and Kachoo Isfandyar as its members.
But the law ministry headed by Mir Saifullah then sat on the vetting notification for the constitution of the Property Tax Board. The withholding of vetting of the notification scuttled the formation of the Board in J&K. The government put the process of constitution of the Board on hold, fearing that any such move will have a serious fallout on the electoral prospects of the NC and Congress in the 2014 Lok Sabha and assembly polls.
This article went live on February twenty-third, two thousand twenty three, at one minutes past four in the afternoon.The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
