House tax to facilitate release of Central funds under JNNURM

The imposition of house tax would ensure release of grants for the UT Administration for projects in various departments under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The flagship project of the administration of providing houses to the economically weaker sections under the rehabilitation scheme, purchase of buses and augmenting water supply are some of the projects that are to be undertaken with funds under the scheme.

Non-imposition of the tax was proving to be a hindrance in getting additional funds for the projects. The administration had sent several reminders to the MC for ensuring imposition of the tax.

The agenda for imposition of house tax was approved by the Municipal Corporation on Thursday amidst a ruckus. At present, it is proposed that the tax at the rate of Re 1 per square yard annually would be charged. The amount, however, is expected to be changed when the agenda is sent to the UT Administration.

UT Adviser K K Sharma said, "There are several projects for which funds are being received under JNNURM. While we have received the funds that we had demanded, non-imposition of house tax would prove to be a problem when in future grants are demanded. As per the MoU signed under JNNURM, there are certain reforms that we are required to undertake."

On whether tax amounting to Re 1 per sq yard annually would be sufficient, the adviser said that he was yet to receive the proposal of the MC. Once it was received, a decision would be taken on the amount.

The administration has certain projects that are going on under JNNURM. Among them is construction of houses for the economically weaker sections. A total of 25,728 flats were to be constructed. While half that number has been constructed, for the remaining, funds would be required. The administration has also sent a proposal for purchase of buses under JNNURM. Funds would be required for these as well.

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