Amid protests by Opposition Parties against the rise in holding tax, Urban Development Minister CP Singh termed the new rule as quite reasonable and has been brought after a thorough discussion over the issue. As per the new rule, people will have to pay holding tax according to the width of the roads in front of their houses or business establishments.
The new format will make one pay 2% of the rental value of 75% of the carpet area of his house which will vary with the house’s proximity from the principal main roads (40 feet wide or more), main roads (40-20 feet wide) and other roads (20 feet wide or less) and the type of rooftops (concrete, asbestos and traditional) it has.
“It has not been increased by us but was passed during the tenure of former Chief Minister Hemant Soren. We have only implemented it after having reviewed it,” said Singh. Moreover, the tax has been decreased to 2 per cent from 2.5 per cent by this Government, he added.
“And, we have already extended the time from April 2014 to April 2016. What more they wantIJ” questioned Singh. A flat having 1230 square feet of area will have to pay only Rs 1620 per year, he added.
The new format suggests that a person living in a 1000 square feet house beside a 40 feet road will have to pay Rs2160 whereas Rs1610 will have to be paid by a person living beside 20 to 39 feet road. People living beside less than 20 feet roads will have to pay Rs1204 per 1000 square feet.
AJSU and other Opposition Parties, on the other hand, have demanded roll back of the new norms.
“As it is irrational to increase 7 times of the current rate and several deformities have also been identified into it, we are demanding a roll back,” said AJSU Mahanagar president Munchun Rai who staged a torchlight procession along with his supporters in Chutia on Sunday.
Jharkhand Chamber of Commerce and Industries (FJCCI) has also registered its objection to the new holding tax rule. FJCCI members asserted that it was essential to raise the tax for the infrastructural development of Municipal bodies, but irrational increase in it was not in the public interest.
“As still there is lack of public amenities in the State, so people are upset with this decision of the State Government,” said FJCCI president Vinay Agrawal.
Under the new format, residents will also have to submit a self-assessment declaration of carpet area of their houses.