India Tax: Property tax - citizens object to proposed KCB hike

29 May 2010 by Ishfaq Naseem -- Pune Citizens are resisting the proposal of the Khadki Cantonment Board (KCB) to increase the property tax by 10-25 percent. The KCB has received objections from 200 people in response to its proposal to increase the Annual Rateable Value (ARV) of nearly 1,000 residential and commercial establishment in the cantonment area. The cantonment board had proposed an increase in the ARV rate by 10-25 percent. While the hike in residential property is proposed to be upto 15 percent, the increase in the ARV rate of the commercial property has been proposed to be upto 25 percent. "We have received the objections from people to the proposed increase in the property tax. These objections will be heard shortly and the hearing will be completed by the end of June, before we take a final decision on the increase in the property tax," said chief revenue superintendent of the KCB, V R Panse.

According to officials, after every three years the KCB has to assess the properties to bring about a revision in the taxes. However in response to the details sought from people about their property to be taxed, the KCB has also received the objections from people. "These objections will be heard on a case -to-case basis before a decision to increase the property tax is taken by the KCB,''said an official of the KCB's tax collection wing. Officials say that property assesment was started by the cantonment board in April this year. The last assesment was done for the period 2005-2008. The cantonment board is presently undertaking the assesment for the period 2008-11. During the assesment of the property, KCB officials are checking the increase in the ARV by way of increase in the rent paid to the landlord and the hike in the rate per square feet of property . "The revision of the tax will be both on the rent collected by people as well as the increase in the rate of the per-square feet of the commercial as well as the residential property," KCB officials said.

Panse said that the despite the objections from the people, KCB expects to increase manifold the annual tax collection of Rs 50 lakh. He said that once the objections are disposed off the hike in the tax will come into force from July this year. " We hope to issue the revised bills to the people to their addresses by July,'' he said. Currently, officials said, the KCB is assesing the property statements filed by people as per revised rates which will be tallied on the ground with their rent deeds and property statements. Officials say that some property owners who are not paying any taxes will be included in the list of fresh tax payers during the assesment.