Cong leaders meet Guv against property tax
Friday, 04/01/2013
http://www.tribuneindia.com/2013/20130104/punjab.htm#9
Chandigarh : A delegation of the Punjab Congress led by Anandpur Sahib MP Ravneet Bittu and Mohali legislator Balbir Singh Sidhu today called on Governor Shivraj Patil here today, claiming the imposition of property tax was an infringement on the autonomy of municipal corporations which should be allowed to impose the tax after considering its income from all resources and budgetary expenditure.
The memorandum claimed that Greater Mohali Area Development Authority (GMADA) had already charged residents for development in the area. It said it was ironical that GMADA was earning a large sum through extension fee, change of land use and auction of commercial and residential sites in the city, but was not sharing the money with local bodies.
Sidhu said that in case of Mohali, since there was no elected body, property tax could not be imposed as this could be done only at the discretion of an elected body. Moreover, since the rates of properties were high, property tax would be an additional burden on citizens, institutions as well as industrial establishments. Considering the rate of escalation of properties, the rate of tax would be doubled in five years' time. he pointed out.
Sidhu said after the abolition of octroi in September, 2006, the government had promised to compensate municipal corporations and committees for the loss by paying them 10 per cent of VAT. He said this was not done.
It seemed that the government now wanted to divert the money collected on account of property tax for populist measures aimed at attracting votes, Sidhu said.
