IE : Bill on property tax to come up for approval : Nov 13,2007
Bill on Property tax to come up for approval
The Bill amends the basis of property tax calculation to capital value-based system
SHWETA DESAI NOVEMBER 9
THE country’s financial capital can finally expect a change in its property tax system with a Bill amending the basis of property tax calculation from the current rate able value- based system to a capital value-based system -coming up for approval in the winter session of the Assembly.
Though elected representatives from South Mumbai are refusing to give their approval, Minister of State for Urban Development Rajesh Tope is confident of passing the Bill. “We are definitely approving it this winter session,” he told Newsline from Ambad in Jalna on Friday.
Talking to Newsline on July 16, just ahead of the monsoon session, Tope had given a similar assurance. “I am certain the Bill will be cleared this session,” he had said.
The state government had formed a legislative joint select-committee to study and discuss the Bill.
However, till now, the committee has met only twice The next meeting, scheduled for November 15, has been postponed. “We will meet on November 19 in Nagpur. If need be, we will hold a few more meetings,” Tope said
The Bill amends the basis of property tax calculation to capital value-based system
SHWETA DESAI NOVEMBER 9
THE country’s financial capital can finally expect a change in its property tax system with a Bill amending the basis of property tax calculation from the current rate able value- based system to a capital value-based system -coming up for approval in the winter session of the Assembly.
Though elected representatives from South Mumbai are refusing to give their approval, Minister of State for Urban Development Rajesh Tope is confident of passing the Bill. “We are definitely approving it this winter session,” he told Newsline from Ambad in Jalna on Friday.
Talking to Newsline on July 16, just ahead of the monsoon session, Tope had given a similar assurance. “I am certain the Bill will be cleared this session,” he had said.
The state government had formed a legislative joint select-committee to study and discuss the Bill.
However, till now, the committee has met only twice The next meeting, scheduled for November 15, has been postponed. “We will meet on November 19 in Nagpur. If need be, we will hold a few more meetings,” Tope said
The Brihanmumbai Municipal Corporation which has been entrusted with the job of convincing the committee members will be giving the presentation on November 19.
Joint Municipal Commis sioner (Improvement), V Radha, said, “We will show examples of how some of the big commercial proper- ties in South Mumbai are paying their property tax as pittance,” she said.
A switch to capital value based system has been a matter of debate, as properties in south mumbai with low rents owing to the rent control act may now have to cough up considerably larger sums in property tax.The rents in these areas were frozen since the 1940s.
Joint Municipal Commis sioner (Improvement), V Radha, said, “We will show examples of how some of the big commercial proper- ties in South Mumbai are paying their property tax as pittance,” she said.
A switch to capital value based system has been a matter of debate, as properties in south mumbai with low rents owing to the rent control act may now have to cough up considerably larger sums in property tax.The rents in these areas were frozen since the 1940s.
“There hasn’t been enough discussion on the is sue and we will not allow it to be approved this winter session,” said committee member and MLA Mangal prabhat Lodha from Malabar Hill.
Sena MLC and senior committee member Divakar Ravate said, “The Bill will need amendments in seven Acts, including Port Trust and building repair.
Sena MLC and senior committee member Divakar Ravate said, “The Bill will need amendments in seven Acts, including Port Trust and building repair.
However, Tope said that he will not listen to “a few members disapproving the Bill. “Tax reforms are necessary. Most committee members are convinced and only for a few we can’t hold back the Bill,” he said, adding that it is difficult to convince Mumbai MLAs because it is a financial matter.
Tope said he will try his best to get their approval. “I am assuring them that the low middle class and middle class people staying in South Mumbai or in suburbs in chawls with house area less than 35,0 sq ft will , not be affected,” Tope said. “I am confident that the Bill will be passed,” he added.
Once cleared, the Bill will allow the BMC to choose between the two systems, as opposed to making it mandatory to adopt the capital value-based computation of tax. Either way,will be applicable to the entire city, including the suburbs.
However, this decision also lies with the elected representative of the civic body. The BMC earns about Rs 1,700 crore annually from the property tax revenue stream; the second highest revenue source for the country’s richest municipal corporation after Octroi. This sum is expected to rise to Rs 2,300 crore if tax is calculated on capital value of properties
Shweta.desai@expressindia.com
Shweta.desai@expressindia.com
Publication : IE; Section : News ; Pg : 10; Date : 13/11/07