Published On : Mon, Mar 16th, 2015

Congress Corporator Praful Patil terms NMC’s Property Tax system illegal; to knock court doors

Patil finds many holes in the new tax system by presenting damning facts and figures

File Pic

File Pic

Nagpur: Congress Corporator Praful Gudadhe-Patil created a sensation when he termed the Property Tax system of NMC illegal. “There is no mention of Ready Reckoner-based assessment of Property Tax in any law. If the Nagpur Municipal Corporation enforces the present system of 62 percent hike in Property Tax and burdens the citizens unnecessarily then I will knock the doors of courts,” warned the Corporator.

The new tax system was approved in the last General Body Meeting of NMC. The Mayor Pravin Datke had hinted that the new tax system will be in force from April 1 this year. In this background, Praful Gudadhe Patil held a press conference and ripped apart the new tax system by presenting the facts and figures based on NMC’s new Act. He said that before implementing the rent value tax system, no suggestions/objections were sought from the citizens. Moreover, there is need to create sub-laws regarding assessment and recovery system. In the new Act, there are only two systems – yearly rent value rate and capital value rate. There is no mention of Ready Reckoner-based rent value rate system in the new law. Therefore, this tax system is illegal. Now, there is increase of 62 percent of Property Tax of citizens and the businessmen will have to cough up at least 71 percent Property Tax more. The disadvantage of this tax system will be that the citizens will hide the real rent value out of fear that they will have to pay more tax to NMC. Or there is possibility that the officials will tell the house owners to keep NMC in dark. Therefore, the Ruling Party’s claim of reducing corruption will prove hollow, declared the Congress Corporator.

No base for Sewage Benefit Tax:

Praful Patil further said that the NMC is recovering Sewage Benefit Tax. But the recovery must be based on how much money is spent on the project providing sewage facilities. But the NMC is recovering Sewage Tax and Water Benefit Tax without any provision in the law. In fact, different taxes have been fixed in city for water. Therefore, the system itself is illegal, stated Patil.

Cheating of open plot holders:

“Recovering of only 25 percent tax from open plot holders is expected. No one takes on rent the open plots in city. Hence, no tax should be imposed. If NMC is recovering tax based on rents then it should return 75 percent of tax. Such provision is in law. The same provision also applies to vacant buildings,” asserted the Congress Corporator.

…then 45 percent tax less for flat owners

Praful Gudadhe Patil said that if the area of bathroom, toilet, balcony, staircase, corridor, and passage is removed from the total area of flat owners then maximum 45 percent tax gets lessened. Previously, in the old laws the area of bathroom, toilet and staircase was being dropped while fixing flat owners’ tax, recalled Patil.

Building owners having mobile tower favoured!

The decision to reduce tax by 50 percent for building owners having mobile towers on terraces is surprising, to say the least.  Why this concession when the building owners receive rents for mobile towers in big proportions? questioned  the leader.

– Rajeev ranjan kushwaha (