Outrage Continues Even as J&K Admin Says Poor Exempted from Property Tax

Srinagar: The Jammu and Kashmir administration has said that the poor and marginalised communities with homes up to 1,000 square feet will be exempted from the recently announced property tax but the opposition against the decision continues to swell in the region.

The administration held a meeting led by the chief secretary following which it clarified that all the poor, marginalised having small houses of built-up area up to 1,000 square feet have been exempted by the government from paying any property tax to be levied from April onwards this year.

The authorities, however, said that the levying of property tax is an “essential part of urban sector reforms” and is aimed to improve the financial health of urban local bodies and improve services, besides creating employment.

In an official statement, the admin added that all the places of worship, including temples, masjids, gurudwaras, churches, ziarats, cremation grounds, burial grounds and agricultural lands are also exempted from it.

The tax, proposed to be levied at 5% of the Taxable Annual Value (TAV) of the property in case of a residential property and at 6% of TAV in case of non-residential property, is claimed to be the lowest in the country. The administration issued public notices, media advertisements, and clarification on social media after receiving flak from a section of people – especially the political leadership, who termed the decision as “arbitrary” and “unjust”. Even the local Bharatiya Janata Party (BJP) leaders said that the decision to levy tax was “made in haste”.

The officials added that small shops will have to pay “very small amounts” citing an example from a shop in the old city area of Jammu with an area of about 200 sq ft – less than 20 years old – would be liable to pay a tax of only Rs 838 per annum.

Following the meeting, the officials were urged by senior administrators to come up with a simple ‘Property Tax calculator’ for people so that they themselves are able to assess the actual amount they are liable to pay.

“It was also mentioned that the economy of J&K has been doing well and the unemployment rate as per GoI data has shown a healthier trend.  The per capita income of people of J&K is amongst better States/UTs,” the statement read. 

All parties on the same page

The political parties, however, had argued that the imposition of property tax should be halted until the economic situation – which underwent back-to-back shocks due to the lockdown and the Covid-19 outbreak – improves in the union territory.

Talking to reporters in the Anantnag district, Democratic Azad Party (DAP) leader Ghulam Nabi Azad said that there is no person from Lakhanpur to Tangdhar who has not suffered losses during recent years.

“People have no source of income. People do not have any problem in paying taxes, but there should be some source of income for them. We know tax will benefit us, but people should have that power to pay the tax,” he said.

The UT administration earlier on February 21 notified rules to impose the tax for the first time in the region triggering concerns amongst the residents. Many argued that such a decision should be taken after due deliberation and only by an elected government. The move also compounded fear in the tens and thousands of residents who are yet to overcome the threat of a recently initiated eviction drive. The mainstream political leaders are now claiming that they will reverse such unpopular moves to end the crisis.

The former chief minister of J&K Azad added that he will bring back the Roshni Act Scheme that had benefited thousands of poor people across Jammu and Kashmir if voted to power in the elections during his earlier address in the South Kashmir district.

“We have back-to-back crises in Jammu and Kashmir. Not only do people feel insecure but economically, the poor are crushed by soaring electricity bills, water charges and now property tax. My aim is to build Jammu and Kashmir as a welfare state where the economy of people grows to an extent, they are willing to pay taxes themselves,” he said.

The National Conference president Dr Farooq Abdullah made a similar claim during a party function on Thursday that if NC comes to power, it will roll back the “anti-people” steps. 

“Such decisions must be left to a democratically elected government in J&K. It all started with disempowering, and disenfranchising our people, and now they are dispossessing them. We won't allow this. If NC comes to power, all these anti-people policies have to go lock stock and barrel,” Dr Farooq was quoted as saying in a party statement.

Apni Party led by businessman-politician Syed Altaf Bukhari on Thursday also said that decisions like imposition of property tax will be “reviewed and revisited” once elections are held in Jammu and Kashmir.

"All anti-people decisions including property tax will be reviewed and revisited once elections are held in J&K because the present dispensation has been stabbing in our chest repeatedly," Bukhari said.

A critic of the People’s Alliance for Gupkar Declaration (PAGD) since he formed the party in March 2020, Bukhari, for the first time has made an appeal for unity to all regional political parties and fight for the welfare of the people. "I appeal to all regional political parties to keep their differences aside, get united, join hands and fight against all anti-people decisions tooth and nail," Bukhari said.