Bhubaneswar: Following directions from the Department of General Administration (GA), the civic authority here after 21 years is set to revise the benchmark value of land cost which will increase the holding tax for property holders.
Holding tax is a direct tax imposed on property and is a significant source of income for the local government. The taxation system requires the owners, lessees or occupiers of the property to pay the tax that is calculated on an annual basis.
As per Odisha Municipal Act, 1950, the Bhubaneswar Municipal Corporation (BMC) which collects holding tax, is supposed to increase the benchmark value of land in every two years according to state government directions. However, since 1998, holding tax and new benchmark value has not been revised in BMC area resulting in huge revenue losses to the exchequer.
However, after the Department of General Administration wrote a letter to the BMC directing it to impose the new benchmark value of land set on February 18 earlier this year, the Municipal Corporation has decided to collect holding tax under the new benchmark from November.
“The new benchmark valuation was fixed February 18 this year. While there has been no change in holding tax but observing difference in benchmark value the amount to be paid will alter. So suppose if property in Rasulgarh has benchmark value of Rs. 10 crore its holding tax will differ from the property that is in Kalinga Nagar and has benchmark value set as Rs. 4 crore,” a senior BMC official explained.
Notice issued to three agencies
Observing non-payment of holding tax and illegal parking, the BMC has sent notice to three private agencies here, Wednesday.
Issued by North Zone Deputy Commissioner, the names included that of Pancham Studio, Symphony Mall and Utkal Hundai.“The assessment of holding tax has been approved and notice is been served for last four months for payment of the same but as an owner you are avoiding it. There have been number of hoardings of which the permission from the BMC has not been sought,” the notice said.
Furthermore, the notice also mentioned about the illegal trade carried by the landowners by allowing traders to continue business on their property without any trade license issued by the BMC. The notice also stated about the use of government allotted property without its consent. “All illegal trades and parking are to be closed and payments of due to be made within a week. Failure to do so will result in sealing of the building and a fine of Rs. 1.83 lakhs will be imposed thereof,” the notice added.