Bhubaneswar: Following protests from civil societies and political parties, Bhubaneswar Municipal Corporation (BMC) has decided to do away with collection of revised holding tax retrospectively. The new rates will be collected from this month only.
Following directions from the Department of General Administration (GA), the civic authority here, after 21 years, revised the benchmark value of land cost earlier in October this year. This resulted in increase of the holding tax for property holders.
“The GA department revised the benchmark value of different Mouzas in July this year stating that it will come into effect from February 18, 2019. However, revised holding tax will not be collected retrospectively. It will be collected from this month only,” a senior official at the BMC stated.
However, the hike has not been well received and political parties like Samajwadi Party and CPM had earlier submitted a memorandum to the Additional Commissioner demanding tax revision. Meanwhile civil societies said that the revision will put a burden on residents as well as those staying on rent. Livelihood of small vendors and shopkeepers would also be affected due to this move, they said.
Samajwadi Party State president Rabi Behera said, “If the proposed hike comes into effect, house owners paying Rs. 6,000 towards holding tax per annum would have to shell out more than Rs. 18,000 per year.”
As per Odisha Municipal Act, 1950, the Bhubaneswar Municipal Corporation (BMC) which collects holding tax, is supposed to increase the benchmark value of land in every two years according to state government directions. However, since 1998, holding tax and new benchmark value has not been revised in BMC area resulting in huge revenue losses to the exchequer.
However, BMC officials said there has been no change in the rate of holding tax as it has remained the same. “While there has been no change in holding tax but observing difference in benchmark value the amount to be paid will alter. So suppose if property in Rasulgarh has benchmark value of Rs. 10 crore, its holding tax will differ from the property that is in Kalinga Nagar and has benchmark value set as Rs. 4 crore,” another official at the BMC explained.
